Lowes Investment Management - Managed Investment Portfolios Brochure

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Managed Investment Portfolios

LOWES INVESTMENT MANAGEMENT

Contents

About Lowes

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About Lowes Investment Management

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What are the Managed Investment Portfolios?

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Key Benefits

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Investment Portfolios

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What can you expect

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Who should consider the Managed Investment Portfolios

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Important information

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LowesIM.co.uk

About Lowes

“Lowes have been providing truly Independent Financial Advice since 1971 to a wide range of people throughout the UK.”

Our unique, successful investment approach honed over nearly five decades, coupled with our personal approach to financial planning has helped both clients and company prosper. In our 2021 client satisfaction survey more than 97% of clients rated our investment advice as ‘good’ or ‘very good’. We have frequently been recognised as one of the UK’s Top 100 Independent Financial Advisers, and are one of only a select group to be accredited as Chartered Financial Planners, which is considered to be the ‘Gold Standard’ of excellence and integrity. We have also been judged by respected Money Marketing Magazine to be amongst the best Investment Advisers in the UK for 11 of the last 12 years and have been recognised in dozens of awards for investment, retirement and estate planning advice. It is a testament to our services that many of our clients stay with the company throughout their lifetimes and introduce us to subsequent generations. We believe that individual and dedicated client care is a central aspect of fulfilling our goal of total peace of mind for our clients. We also recognise that no individual alone could possibly manage your financial affairs and be an authority on the complicated details of all financial planning solutions and Investments. It is for this reason that Lowes has an extensive support team of individuals with decades of experience in the world of personal finance and investment.

About Lowes Investment Management

Lowes Investment Management forms part of Lowes Group alongside Lowes Financial Management and was established in 2020 as a dedicated investment management arm of the business. The team within Lowes Investment Management are responsible for managing the Lowes’ Open Ended Investment Companies (OEICs) and the managed investment portfolios. The award-winning investment team have many years’ experience with a particular focus of analysing collective investment vehicles. The team has developed and refined its own investment process over time, which is fundamental in helping them shortlist funds worthy of further investigation. From there, the funds are subject to a thorough, qualitative analysis through the use of independent research and meeting with the management teams to truly get under the bonnet and fully understand their respective investment philosophies. This knowledge lets the managers create portfolios which fully align with intended objectives and risk tolerances whilst being diverse in terms of investment style, assets, and geographical regions where appropriate.

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What are the Managed Investment Portfolios?

Our Managed Investment Portfolios cover a variety of long-term objectives and have differing risk profiles. Unlike our traditional range of portfolios however, the Managed Investment Portfolios are much more agile, meaning the managers can take advantage of new opportunities as they arise but more importantly, can switch out of under-performing funds without delay. The portfolios allow the efficient consolidation of assets to maximise the potential for returns within agreed risk tolerances and the method of operation overcomes the potential delays and hurdles that can inhibit traditional, advisory portfolio management. They are managed by our award winning team, who will also regularly re-balance portfolios to ensure asset and individual fund allocations do not drift too far from the original, intended parameters. Whilst your Adviser will identify the portfolio, or combination of portfolios, which best suits your appetite for risk, capacity for loss and which most closely match your investment objectives, once in place the management, including any fund switching will all happen promptly and seamlessly behind the scenes.

Lowes Investment Management Portfolios

Points of Difference

Traditional advisory portfolio

Responsibility for action

Lowes Investment Management

Client express authority

Additional fee of £1 (Inc. VAT) per annum per £1k invested

Lowes fees

Part of ongoing fee

Time to switch funds

1 day

Weeks - months

Rebalancing to asset allocation and risk tolerance

A least annually - when managers deem appropriate

None without full advice process

Client paperwork and involvement

Information only

Information plus every transaction

Risk Management

Optimal alignment

Can experience portfolio drift

Key Benefits • A range of portfolios designed to deliver specific investment objectives and reflect differing attitudes to risk. • Agile investment management ensuring that portfolios are active in responding to market conditions, whilst providing consistent risk management.

• Timely informed decisions by Lowes extensive investment resources, including Lowes investment managers and in-house research department. • Allows you, as the client, to be less involved in the onerous, administrative elements of investment management.

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Investment Portfolios Lowes Investment Management offers eight investment portfolios which allocate to collective investment schemes, such as open ended investment schemes

(OEICs) and unit trusts, run by experienced fund managers.

No investment is risk free and even the lowest risk investment carries the potential of total loss in the most extreme circumstances and so diversification is key. Risk tolerance and capacity for loss should be discussed with your adviser before any investment is recommended.

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Defensive Growth Portfolio (Risk Level 2)

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Objective

To protect capital values against the effects of inflation over the medium to long term, whilst minimising the effects of market downturns.

Strategy

The portfolio is constructed so that at least sixty percent will be allocated to Targeted Absolute Return funds which seek to generate positive returns in all market conditions with significantly less volatility than equities. This means that these strategies can include a greater use of derivative based strategies by the underlying fund managers. The remainder of the portfolio will include an allocation to funds from other Investment Association (IA) sectors where it is believed that they contribute to the overall portfolio objective.

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Mixed Investment 0% - 35% Shares Portfolio (Risk Level 2+)

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Objective

To provide a total return over the medium to long term, mainly through income generation, which is sufficient to provide some capital growth, after inflation, but with a focus on keeping a low level of volatility.

Strategy

The portfolio invests in a diversified range of funds across multiple asset classes, such as equities, fixed interest and direct commercial property. Investing in line with the parameters of the Investment Association Mixed Investment 0% - 35% Shares sector, this portfolio will never have more than 35% of its assets invested in equity funds and will also tend to have a bias towards the UK to reduce the effects of currency fluctuations. The lower equity content will hopefully reduce the volatility exhibited by this portfolio in all but the most extreme market conditions, but still produce sufficient returns to protect capital against the effects of inflation in the medium to long term.

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Mixed Investment 20% - 60% Shares Portfolio (Risk Level 2+)

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Objective

To provide a total return from a combination of income and some capital growth over the medium to long term, sufficient to allow a low level of income to be taken whilst protecting capital against the effects of inflation.

Strategy

The portfolio invests in a diversified range of funds across multiple asset classes, such as equities, fixed interest and direct commercial property. Investing in line with the parameters of the Investment Association Mixed Investment 20% - 60% Shares sector, this portfolio will always have at least 20% of its assets invested in equity funds but never more than 60%. The slightly higher equity content should provide for some capital growth even when taking a modest level of income, whilst the balanced nature of the different asset classes should provide a lower level of volatility compared to portfolios with a higher equity content.

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Mixed Investment 40% - 85% Shares Portfolio (Risk Level 3-)

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Objective

To provide a combination of both income and capital growth over the medium to long term.

Strategy

The portfolio invests in a diversified range of funds across multiple asset classes, such as equities, fixed interest and direct commercial property. Investing in line with the parameters of the Investment Association Mixed Investment 40% - 85% Shares sector, this portfolio will always have at least 40% of its assets invested in equity funds but never more than 85%. Usually having the majority of its assets invested in equities, this portfolio should provide capital growth as well as allowing a certain level of income to be taken. Whilst exhibiting more volatility than the portfolios with a lower equity exposure, this portfolio would still hopefully provide some protection compared to a pure equity portfolio in a falling market.

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Global Select Portfolio (Risk Level 3+)

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Objective

To provide capital growth over the medium to long term through a diversified portfolio of funds investing in global equities.

Strategy

Investing only in equities, the portfolio is designed to maintain a global exposure and focusses on funds whose remit is to invest in areas of the world’s equity markets which, although possibly more volatile, we believe offer the prospect of higher long term capital growth. In line with the desire to maintain a balance of investments around the globe, UK equities will usually represent at most 20% of the portfolio.

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Cautious Managed Portfolio (Risk Level 2+)

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Objective

To provide capital growth over the medium to long term, mainly through income producing funds, making it suitable for those looking to make regular withdrawals, and with a focus on lower cost investments.

Strategy

The portfolio has been constructed so that asset allocation is in line with the investment restrictions of the IA Mixed Investment 20% - 60% Shares sector. The portfolio invests in equity, fixed interest, property and multi-asset funds, with a focus on lower cost options, where appropriate, but not at the expense of flexibility or an increase in internal risk.

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Ethical Portfolio (Risk Level 2 or 3)

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Objective

To provide capital growth by investing in a diversified portfolio of funds classified as investing with an ethical or socially responsible outlook.

Strategy

These portfolios utilise funds investing both in equities and fixed interest assets. The funds used all meet strict ethical and socially responsible criteria and mainly do this by excluding investment in certain sectors and industries. In order to meet the desired Risk Level, the portfolios are constructed to meet the IA’s guidelines for either a Mixed Investment 20% - 60% Shares fund, or a Mixed Investment 40% - 85% Shares fund.

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Changing World Portfolio (Risk Level 4)

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Objective

To provide capital growth over the long term by investing in funds which take exposure to what are perceived to be global megatrends.

Strategy

The portfolio has been constructed to invest in funds with exposure to themes that are perceived to be major trends which will shape the world in the future. These are trends which will be driven by demographics, technology, the environment and social behaviour. The portfolio will therefore contain exposure to themes such as technology, alternative energy, food supply, water supply, biotechnology and healthcare, along with companies that offer significant growth prospects, with an emphasis on companies operating in industries with potential for structural change and innovation. Due to the nature of the underlying investments this portfolio is expected to exhibit higher levels of volatility, but over the longer term it is hoped that investors will be rewarded with higher levels of return than a typical equity portfolio.

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What can you expect? Once agreed, your portfolio will be managed on a discretionary basis, with management having been delegated to us. We understand that first-rate service is as important as investment excellence. The managed portfolios will give you:

• A straightforward application process and documentation.

• A faster execution of investment changes and provides us with the ability to ensure portfolios are continuously invested optimally and in line with agreed risk profiles, whilst also being managed on a cost-effective basis.

• Regular investment updates.

• Clear and efficient communication where we provide information that is always detailed and transparent.

Who should consider the Lowes Investment Portfolios? The Lowes Investment Portfolios cover a variety of risk tolerances and objectives making them suitable for most retail investors looking for income, growth or a combination of the two from their investments. Before investing, clients should be comfortable with these investments not being guaranteed and therefore subject to the possibility of a capital loss. Consequently, they should also be prepared to invest for the medium to long term. They are especially suitable for those who want to have the final say regarding the investment objective and risk tolerance, in conjunction with the advice of their financial consultant, but don’t want to be involved with the day to day monitoring, management and switching administration of the portfolio once implemented.

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LowesIM.co.uk

Get in touch...

Call: 0191 281 8811 Email: LIM@Lowes.co.uk Visit: www.LowesIM.co.uk

To find out more about Lowes Investment Management and the Managed Investment Portfolios:

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Important Information The value of investments can fall and you may get back less than you invested. Past performance is not a guide to future performance. No investment is suitable in all cases and if you have any doubts as to an investment’s suitability then you should contact your financial consultant.

The information within this document does not relate to the personal circumstances of any one individual. It is recommended that investors seek independent advice, where necessary, before making any decision to invest or indeed, to subsequently disinvest. The value of investments and any income earned may go down as well as up and is not guaranteed. Past performance is not necessarily a guide to future performance.

The content of this brochure has been written and prepared by Lowes Investment Management Ltd. The document should not be relied upon as a forecast, considered research, or an offer to buy or sell securities with respect to any investment vehicle. The purpose of this brochure is to provide information on this service. No liability is accepted for the accuracy or completeness of any information and opinion contained in this document which may be subject to updating and amending.

Fernwood House, Clayton Road, Jesmond, Newcastle upon Tyne, NE2 1TL 0191 281 8811 | LowesIM.co.uk

Lowes Investment Management is authorised and regulated by the Financial Conduct Authority (192938).

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