Whatever your goals, we want to be sure that the investment strategy we recommend for you is in line with your attitude to investment risk and your acceptance of any loss in the value of your capital invested. To do this we need to consider a number of factors. They include:-
The anticipated length of time you want your investment to run—its 'term'.
Cash reserves you want to be available to meet unexpected events.
Your view on the potential for your income to grow. How much capital you want to invest. Whether you have any debts.
Your overall view and understanding on investing.
Your goals—and whether you really want to take on risk to achieve them.
The impact to you of short term falls in the value of your capital.
The importance of protecting your capital from the effects of inflation.
The question of 'liquidity' - if you need to cash in part or all of your investment, how easy will it be and will you be penalised.
To establish your attitude to investment risk and capital loss, we will go through a questionnaire with you. Each answer produces a score and the scores are aggregated to calculate your specific level of tolerance for investment risk from 1 (very cautious) to 10 (very adventurous). We call this your risk profile score.
The risk profiling questionnaire we use has been developed by a leading actuarial consultancy Tillinghast Towers Watson to meet the best industry practice and guidelines laid down by our regulatory body, the Financial Conduct Authority.