Investment Process - Invest compass

> YOUR INVESTMENT OBJECTIVES

A high net-worth individual who has accumulated assets through the course of their life will have different criteria to those who are earlier on in their careers and are beginning to accumulate.

Some clients will have very specific complexities to consider whereas others may just have simple savings goals. Typically, clients will have wealth preservation, income, savings or tax at the heart of any financial strategy.

> RISK

The term ‘Risk’ is subjective, and can mean many different things to different people. We use a modern psychometric risk profiling system to ensure that all recommendations perfectly match each client’s individual requirements.

In investment terms, there are four types of risk to be considered:

  • Risk Required: To achieve a certain level of return.
  • Risk Perceived: Equities are generally considered ‘risky’ because they are volatile, but even cash has inflation risks.
  • Risk Capacity: This considers the impact on your lifestyle, or on the chance of you achieving your goals, that a fall in value would have.
  • Risk Tolerance: This is how comfortable you are with seeing your portfolio rise and fall in value.

Your adviser will ask you to complete a questionnaire about risk, and use this to suggest a suitable risk profile from a range of ten categories. Choosing the right risk profile is an important foundation for designing the Investment Strategy, so your adviser will talk over the results and alternative categories with you in some detail.

> PORTFOLIO DESIGN

Having established your current position, risk category and objectives for your portfolio, the next step is for one of our financial advisers to construct a suitable investment portfolio.

The funds will be selected using an asset allocation approach with certain percentages invested in different sectors, in line with your attitude to risk. Your portfolio will need to be reviewed periodically and rebalanced where necessary to ensure it continues to be suitable. Otherwise, a portfolio made up of individual funds to meet a certain asset allocation will become unbalanced over time and this may mean the structure no longer meets your attitude to risk or personal circumstances.

A diversified portfolio of investment funds can offer:

  • The opportunity to increase the value of your capital.
  • The opportunity to receive regular withdrawals or income.
  • The ability to spread your investment amongst different types of investment funds from a number of leading fund management groups.
  • Different investment funds with different aims.

When we have arranged any investments on your behalf, we will invite you to an annual review but will be glad to advise you at any time you ask us to do so.

For further information see our ‘Investment Strategy Guide’ in our document library here.

Next: Multi Asset Portfolios »


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I would highly recommend Churchill Wealth Management. They have designed a long-term financial plan for me which includes building up my personal pension and using my ISA allowances every year. So far I’m sticking to it and I’m actually quite enjoying watching the value of my savings increase. I am missing out on some shopping though! I can see me having a long and fruitful relationship with Churchill and I have recommended their services to friends.

Jane, Bristol


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