Astute Financial Planning logo  
 
Home   |   Legal notice   |   Contact Us
 
   
 

We do not pretend to be able to pick the 'star funds' and 'star fund managers' of the future. Instead we approach investment planning in a more sophisticated, reliable and balanced way.

Because it has been proven in various academic studies that around 90% of the difference in investment returns is down to the makeup of the major investment asset classes we adopt a fully diversified investment approach with our clients. This agreed diversification of investments is reviewed at each financial planning strategy meeting and rebalanced when necessary.

Because the major asset classes behave differently at different stages of the economic cycle, one can achieve more consistent, reliable and less volatile investment returns by carefully blending the asset classes together.

This approach is explained further in this diagram

Why do we recommend such diversification of investments within client portfolios?

This is because when the capital value of equities fall, it is generally expected that the capital value of fixed interest investments will rise, and vice versa. However, commercial property investments have historically not been directly correlated with either equities or fixed interest investments and are therefore a very useful way to add further diversification to one's investment portfolio.

We therefore help our clients decide on an appropriate asset allocation for their investment portfolios by deciding on a suitable balance of growth assets (eg Equities and Property investments) and more defensive assets (eg Gilts and Fixed Interest investments).  Once the balance between growth assets and more defensive assets has been decided upon, it is regularly reviewed and rebalanced so as to maintain the agreed level of investment risk (and reward) that our clients wish to adopt.

By diversifying amongst the major asset classes and by blending investment styles within those asset classes (as shown in the diagram above), more efficient and predictable investment returns can be achieved for our clients, the majority of whom want decent investment returns but who also want to sleep at night.

Please note that the value of investments can fall as well as rise, capital values are usually not guaranteed and past investment performance is not a guide as to future investment performance.


 
 
Copyright © 2018 Astute Financial Planning. All rights reserved. Web design: Gel Creative
 
  Astute Financial & Lifestyle Planning Limited, trading as Astute Financial Planning, is authorised and regulated
by the Financial Conduct Authority (FCA) ~ reference no. 437966.