Lowes Magazine Issue 128

INVESTMENT

How we help our clients

What if the markets crash? 2022, with its economic and geo-political issues, saw the FTSE 100 index fall by around 9% from start to its lowest point during the year. Yet by the end of December it had regained the losses. With an actively managed strategy, we look for funds that don’t just follow the index but aim to find the better performing companies and avoid the negative ones, to deliver better returns for our clients over the long term. Crashes and downturns are inevitable and are part of the risk accepted when investing over saving into cash. We’d suggest no investment is considered for less than five years and taking a long term view is key to weathering a market downturn. There are no guarantees, of course, and a buy-and-hold strategy takes patience and discipline. But we have found this to be the most consistent way to obtain returns on our investments. By helping our clients understand this, and the risk and rewards of investing, we aim for them to be able to sleep easier at night, no matter what the markets are doing, knowing their investments are being looked after by professionals. Currently, another regular question we are asked is whether to keep more money in cash now deposit accounts are giving better rates of return. The fact is, inflation is still higher than the best cash account rates of return, which means the purchasing power of cash is decreasing by the difference between them. It still makes sense to hold some of your money in cash, within your portfolio and as an emergency fund, but a well- diversified, actively managed investment proposition, offers better potential for delivering on our clients’ long term financial planning aspirations.

When and where to invest are questions we often get asked, as Debbie Ramm, Financial Planner explains.

When and where is it best to invest are questions that often arise when we talk to new clients. We appreciate that taking a first step or investing more into the markets can be a daunting prospect. As to when to invest, the simple answer is that the ‘best’ time is when you are ready to invest and ideally, can do so with a long term perspective. The longer you invest the more opportunity there is for your money to grow. If you keep investing and re-invest the returns you make, then your portfolio and your wealth will accumulate over the years. Where to invest can be more complicated. There are other inevitable questions that arise, such as which investment ‘vehicle’ to use and ‘what if the markets crash?’ This is where the experience and expertise of our team has proven to be invaluable. There are thousands of investment funds available to choose from plus a myriad of other investment solutions that can be used to create portfolios. Our award-winning investment team analyse and filter most of the investment universe so our Advisers can recommend a portfolio of investments that fits with each individual client’s financial planning goals. After over 50 years of helping people get the best out of their investments, we believe actively managed funds are better positioned to deliver returns and protect capital through various market scenarios. Careful selection of funds (and fund managers) is essential, as is diversification of assets within a portfolio – the old adage of not having ‘all your eggs in one basket’. This is one reason why we also favour having structured products within a portfolio, as they provide diversification, defined outcomes and a level of capital protection.

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This is where the experience and expertise of our team has proven to be invaluable.

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