Client Investment Risk profile Notes

Questions 1-16

Firstly there is a section of 16 questions that ask details to help us ascertain your investment risk profile by answering this series of questions builds up a picture of your attitude to risk and assist us in formulating our advice. Give one response for each question that best suits your attitude to risk.

 

Question 17

Asks if you are expecting an inherence this information could significantly affect the value of your Portfolio and therefore may influence the decision as to where your money should be invested so please provide full details if there is none please indicate that this the case.

 

Questions 18

Helps us to determine what types of investments that you would be comfortable in holding, if you only wish to invest in capital protected products or cash option this does significantly reduce the investment option available and may reduce the expected return. Often capital protected products involve tying up funds for some time.  The other options give a greater degree of flexibility.

 

Question 19

Having the ability to switch quickly is particularly important it enables us to sell your higher risk investments and invest in lower risk investments quickly should that be requested. During times of economic uncertainty or financial crisis having this facility could be important. Just because the facility is available gives no guarantees that your funds will be moved. But Abbot Associates Ltd will endeavour to keep you updated on a regular basis assuming you have an ongoing service agreement which is recommend.

Where we have stated in most circumstances there are some exceptional circumstances when markets will not allow instructions or there could be a failure in electronic communication between us and the company who will take the instruction which does mean that there could be a delay. However, Abbot Associates ltd will try to implement any switch buy or sell instruction as soon as possible after the instruction has been received.

 

Question 20

This is to determine how much cash you need for emergency funds please tick or complete the amount of emergency funds you require.

 

Question 21

There is part of your investment monies that we invest in cash, the amount you have invested in cash funds directly affect how much we would allocated of your portfolio to cash. As your investments with Abbot Associates ltd are invested in a range of assets to keep the balance between all the asset classes it is important to ensure that you are not to over weight in one sector particularly cash as the returns are poor.

 

Other info 

All the questions have been designed to ensure Abbot Associates Ltd has all the unto date relevant information to ensure you individual investment/pension portfolio is allocated to suit your needs.

The other main aspects that my affect the investment allocation is taxation and as this can change we may consider reallocating some investments, the economic cycle, weather we are in a growth period or a recessionary period, high or low interest rates, the effects of inflation. These examples are only some of the influences how your investment funds are allocated.

There are many different systems for investing most work well in a period but very few consistently provide good long term performance being fixable helps Abbot Associates Ltd to react to changing events and reallocated funds accordingly.  

 

All investments carry some sort of risk.

 

See below for some example:-

 A cash investment such as a bank or deposit account can have several risks.  Two examples of which are firstly that if the bank fails you may lose some of your money and secondly, if it is covered by the government compensation scheme, it could take months even years, to get your money back.  As a consequence you may have lost substantial interest in the interim.  Also in the long term deposit rates are lower than inflation, so you can suffer an inflation risk.  

Property risk most properties are of a substantial value, so often a large proportion of your investment is in one geographical location.  This can be affected by local economics, examples of which could be a large employer going out of business, local political uncertainty or environmental risks, such as floods. You also may require some time to sell a property.

For rented property there could be the risk of not being able to rent out due to a decline in the neighbourhood or for example in a university town, a much lower number of students decide to study, reducing  the requirement of accommodation. Mortgaged property interest rate increases can substantially inflate the cost.

Stocks and shares the main risks are falling profits and dividends, poor economic outlook both global and locally, political risk such as increase in tax, and market sentiment. Short term volatility risk and possible liquidity risk especially for smaller companies e.g. a company going into liquidation.

Gilts & Bonds changes in interest rates and liquidity risk (the inability to sell when you wish to as a buyer can be difficult to find) especially for corporate bonds.  

 

Foreign investments could be exposed to any of the aforementioned risks in addition to currency and political factors specific to that particular country.

 

Commodities the price of commodities like gold and silver is determined mainly by supply and demand.  If there is a shortage of copper then the price tends to rise.  If there is a glut, it tends to fall; the price is often a result of the anticipated demand, rather than the actual demand which increases volatility.

Other investments are more specialized eg, works of art, antiques and vintage cars which are a very specialized market. Often the price can fluctuate and it may be difficult to get an accurate valuation or sometimes it is not possible to sell.

 

3 important considerations are:

  1. How long the investment is for?

    The longer the investment is held the more likely that any early losses can recover and the potential for larger gains.

  2. How much income is require?

    Ensure the investment can provide the income required without losing capital or it will erode quickly.

  3. It is important to spread your assets

    Spreading assets between a range of different investments to reduce the risk when some assets are falling.  Active asset allocation can take advantage of this by increasing you’re holding in rising assets and decreasing your holding in falling assets.

 

How is the investment made in one single payment, a few payments, or a monthly or yearly investment? A regular payment substantially reduces the risk of purchasing at the wrong time and spreads the risk.

Final point - regular payments.

  We recommend you see our document regarding pound cost averaging. 

To help Abbot Associates Ltd to advise you on your investment allocation, please complete a risk profile questionnaire.

Call Office open 9-5 week days

TEL : 0117 9574006
FAX : 0117 9397668

Email: info@abbotassociates.com


 

Address:-

Abbot Associates Ltd

Elleray House

Beckspool Rd

Hambrook

Bristol BS16 1QZ

Abbot Associates Ltd is Authorised and Regulated by the Financial Conduct Authority.
Abbot Associates Ltd is registered in England & Wales and the Company Registration Number is 2873772
Directors: Paul Currer, Daniel Chard.

We are entered on the Financial Services  Register No. 190792 at  www.fsa.gov.uk/register/home.do

• You should be aware that your property may be repossessed if you do not keep up repayments on your Mortgage or other loans secured upon it.
• Past performance is no guarantee of future returns.
• The value of investments and any income from them can fall as well as rise.
• Changes in currency rates may cause the value of certain funds to fall or rise.

The Financial Conduct  Authority does not regulate taxation advice and some aspects
            of Buy to Let Mortgages.

Where you have a complaint or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the financial ombudsman service to help you resolve this please see the following link for further details: -

http://financial-ombudsman.org.uk
• Our recommendations, and any references to taxation are based on our understanding of current tax legislation which may change in the future. Please note: Tax benefits are subject to change and individual circumstances.

The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK

Registered in England and Wales No. 3873772 Registered Address: Elleray House Beckspool Rd Hambrook Bristol BS16 1QZ