Investment Management

• Investment management focuses on growing wealth through strategic investment in various assets or investment funds while minimizing unnecessary risks.
• Investment management encompasses a wide array of investment types, including ISAs, managed portfolios, ethical and sustainable investments, investment bonds, and tax-efficient options like VCTs and EIS.
• Clients pay for investment management advice and services, including investment management charges deducted from the investment value. The initial meeting involves discussing existing investments, financial goals, risk tolerance, and setting up a diversified portfolio aligned with the client's objectives.

What is Investment Management?

Investment management is all about finding ways to make sure your money grows, without taking unnecessary risks, by investing it in investment funds or other assets.

What sort of areas does Investment Management cover?

Investment management is a very broad term that covers a vast range of different types of investments and investment wrappers, including:

• Individual Savings Accounts (ISAs) that invest in stocks and shares.
• Discretionary Fund Managed Portfolios: where investment experts build and manage a portfolio featuring a diverse range of investments.
• Model Portfolio Services: a cost-effective way of owning a ready-made portfolio of diversified investments, based on your attitude towards risk and return.
• Ethical, ESG and Sustainable Investments: investments that make sure your money is invested responsibly, in ways that make a positive contribution to society, and in line with your personal beliefs.
• Onshore and offshore investment bonds: investments that also offer life insurance cover as well as a tax-efficient rate of return.
• Other tax-efficient investments such as Venture Capital Trusts (VCTs) and the Enterprise Investment Scheme (EIS) that offer incentives for investing in fast-growing, small entrepreneurial companies.

How do you pay for Investment Management?

As well as paying for the advice from your wealth manager, if you choose to invest, you’ll also be expected to pay investment management charges. These cover the costs of researching, selecting and purchasing the investments in your fund or portfolio.

While you’ll have to pay for the wealth management advice you receive, Investment management charges are usually deducted from the total value of your investment. You’ll also pay an annual administration charge that covers the cost of overseeing the investment, and you might be required to pay performance fees if your investment achieves returns above a target level.

All of these fees should be explained carefully to you by your financial adviser or wealth manager before you make any decision.

What will the initial meeting be like?

Your wealth manager will want to hear about any existing investments you have. They’ll also ask you about your personal circumstances, financial goals and attitude to risk – for example, whether you consider yourself to be a cautious individual or if you’re prepared to accept a higher level of risk to achieve greater potential growth.

Once your investments have been set up, your wealth manager will regularly review your investment portfolio to make sure it is still meeting your financial objectives. Should your circumstances change, they can adapt your investments to suit your lifestyle needs.

What’s most important to remember?

A diversified, well-managed investment portfolio should make sure your money works harder, and that your personal wealth increases over the longer term. All investments, however, come with an element of risk, along with the warning that you may lose some – or all – of your investment. You need to work closely with your wealth manager to help determine the most appropriate level of risk to suit your circumstances.

In our experience…

There’s a vast universe of investments out there, and it’s the job of your wealth manager to work with you to identify the right investments to help you achieve your financial goals. It’s important to enter into any investment with your eyes open and to make sure that you invest according to your personal attitude towards risk and return.