WHEN IT COMES TO FUNDS, THE BEST ADVICE IS PERSONAL The recent trials of the Woodford fund highlight the importance of personal investment advice from Professionals. The suspension of dealings, probably until at least the end of this year, in this heavily promoted UK equity income fund has exposed the blurred line between investment advice and guidance. The Investment Association states that there are around 3,500 funds on sale in the UK, sorted into over 30 individual investment sectors with about 10% listed in the ‘unclassified’ sector. Understandably, faced with this huge choice, many private investors want some help in making their fund selections and the investment advice and assistance they receive has come under the spotlight following the recent suspension of trading in the Woodford Equity Income Fund . The fund’s manager, Neil Woodford, had established a pre-eminent track record with Invesco Perpetual before leaving in 2014 to set up his own fund management business and , unsurprisingly, a huge amount of money followed. Clearly, Woodford was helped by a common feature of today’s fund marketplace: favoured fund lists. The lists typically consist of 50 –100 funds, spread across those 30+ sectors and chosen by firms whose main business is ‘marketing funds to the public’. Criteria for selection is not always specified, but there is often a heavy reliance on past performance. However, one aspect is clear: if you pick a fund from the list, then it is you who are making the choice. Favoured fund lists do not constitute personal financial advice, even if may investors think that is
what they are receiving. At best they are a form of general guidance, attempting to sort some of the ‘wheat from a large volume of chaff’. The favoured list only supplies the selector’s opinion at the time. It does not offer you a recommendation based on your personal circumstances, which would include consideration of the other investments you hold, whether held directly or indirectly, say via pensions. Nor will the provider of the list offer any ongoing support, an important factor in current market conditions. There is a role for recommended fund lists, but there is no substitute for personal, regularly reviewed advice on your investments. At Pembroke Financial Services we have created a globally diversified, actively managed, quarterly rebalanced range of ‘model portfolios’ designed for clients with all investment risk profiles – from Cautious through to Adventurous – and a range of risk-graded Ethical portfolios and specialist Income and Pension Drawdown portfolios. In contrast to the ‘Favoured fund lists’, our model portfolios are actively and professionally managed in collaboration with an award-winning Discretionary Fund Manager. With a quarter of a billion pounds of our clients’ money managed under this Wealth Management proposition utilising ISA, Pension, Bond and Collectives tax wrappers, we believe that we can help clients at any stage of wealth accumulation.
We’re always here to discuss your Investment portfolio and your options – 2019 is already proving to be an interesting year. Let’s talk.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.
Pembroke Financial Services T. 01273 774855 E. advice@pembrokefinancial.co.uk W. www.pembrokefinancial.co.uk
Marlborough House, 102-110 High Street, Shoreham-by-Sea, West Sussex BN43 5DB
Keith Relf Managing Director Keith Bonner Director
Pembroke Financial Services Limited is Authorised and Regulated by the Financial Conduct Authority. We are entered in the Financial Services Register under number 228341, www.fca.org.uk. Registered and Incorporated in England & Wales at 30 New Road, Brighton, East Sussex, BN1 1BN under number 2518721.The FCA does not regulate National Savings, or some forms of Mortgage, Tax Planning, Offshore Investments or School Fees Planning.
Please mention Inside Shoreham & Southwick when responding to adverts
15