MANAGING your investments is a tough enough task at the best of times, but in an economic climate where unpredictability and uncertainty has become the norm, and in an age where there is more financial information available than you could ever hope to review and act upon, it’s become even more difficult.
For those with a long-term approach to investing, a traditional ‘buy and hold’ strategy seemed to provide a relatively low-risk option for securing the sought-after returns, but these days, a new strategy is needed to stay ahead of market trends and secure the best possible returns whether market sentiments are positive or negative.
To help meet this need, North East wealth management firm Bailey Richards has launched a new active management service – Signature – which uses bespoke personal risk profiling and asset allocation tools to actively identify the best investment options for individuals’ specific needs at any given time.
The Signature system, which has been established for more than a decade, but which has only recently become available to the retail market, assesses your fund choices against nine carefully-chosen investment criteria, setting a threshold score against which investment decisions are then made.
The performance of the fund is monitored on a month-by-month basis against these criteria and the threshold that has been set, with any fall below that mark triggering a new set of buying and selling recommendations.
As and when a new fund is chosen, the Signature system automatically begins to monitor it in the same way, and so the cycle continues.
Simple monthly emails are provided to investors which clearly communicate the buys and sells recommended, and even when no changes are recommended, you still receive an email notifying you that the portfolio has been checked for that month and no changes are needed.
Detailed analysis of investment performance over recent years has shown that use of the Signature system has facilitated returns up to three per cent per annum better than the sector averages for the same period, with the investment outcomes secured in both rising and falling markets being appreciably better.
Simon Richards, managing director at Bailey Richards, said: “The combination of the very personal approach that we take to looking after our clients’ financial affairs and the capacity for true active management that the Signature system provides makes for a very compelling strategic investment package.
“We’ve been developing Signature with a number of our existing clients, and the feedback that we’ve had has been extremely positive – as well as improving the returns that they’ve secured on their money, they’ve also told us that it has enhanced their connection with, and understanding of, their investments, which can only be a positive outcome for all parties.
“Guaranteeing that losses won’t occur is, of course, beyond any system’s capability, but the speed at which the Signature system allows the risk of losses to be assessed means that decisions can be made to switch investments elsewhere quickly and easily.
“Managing portfolios in this proactive way provides a far more productive and risk-averse strategy than previous investment approaches, and the figures that have resulted from taking this approach over recent years show how well the theory translates into practice.”
The Signature service is suitable for anyone with an investment portfolio worth £100,000 or more. For further information, please visit www.baileyrichards.co.uk or contact Simon Richards on 0191 404 6860.