A & M Wealth Management – December Newsletter 2013

A & M Wealth Management – December Newsletter 2013

Putting clients first pays dividends

Although the global economic outlook remains uncertain, 2013 is proving to be a successful year for both A & M Wealth Management and our clients.

Since we began in March 2004, we have concentrated on providing totally independent, bespoke investment advice to recipients of personal injury, clinical negligence and matrimonial settlements. The quality of our advice and services is highly regarded within the legal community and we have become the adviser of choice for many larger settlements.

As truly independent advisers, we work closely with all of our clients to tailor investment solutions to meet their specific needs. Having no ties or links to financial institutions or fund managers ensures that potential conflicts of interest are avoided. Having a smaller number of higher net worth clients enables us to devote the time and resources to managing investments and providing them with valuable advice and support.

Our Investment Advisory Management Service is designed to minimise investment risk, whilst maximising growth potential. We use our expertise to guide clients through changing market conditions preferring to be proactive rather than reactive.

Since the collapse of global asset prices in 2008, we have encouraged clients to take advantage of the inevitable recovery. Many clients have achieved returns in excess of 60% over the past 5 years, whilst maintaining a medium risk profile. Crystallising capital gains and rebalancing portfolios is helping to protect and reduce risk.

Risk should be fully understood and managed as it can never be avoided. Volatility risk should always be weighed against the risk of capital not being able to meet future objectives. The Lord Chancellor once stated that personal injury claimants should be not be treated like ordinary investors and in a perfect world they would not be. However, most claims compromise and claimants are subject to the same financial pressures as everybody else, such as rising inflation and taxation.

A bespoke investment solution that meets individual needs is always preferable to a “standard model” portfolio and risk should be tailored to suit the client, not the adviser.

Although the global economic outlook remains uncertain, 2013 is proving to be a successful year for both A & M Wealth Management and our clients.

Client care and peace of mind

Recipients of larger settlement awards are usually left quite vulnerable as a result of their injuries, whilst parents will remain anxious about an injured child’s future. A divorcee may be assuming financial independence for the first time.

Peace of mind can be important as any potential investment return and this is one area where claimants should be treated differently to ordinary investors. Putting together the right investment strategy is only the beginning of what should be a long term relationship. Managing investment strategies, asset rebalancing and tax planning are all essential parts of the investment process, but managing client’s anxieties and expectations is equally important.

At A & M Wealth Management we devote as much time and energy into looking after our existing clients as we do seeking new ones. Keeping clients informed is an integral part of the review process and is highly regarded by many. We offer unrivalled investment expertise, backed up by regular review and support services. By always being available with help and advice, we earn our clients trust, which only enhances the relationship.

The only certainty in investment advice is how much it costs!

The removal of commissions and the introduction of adviser charging should improve clarity and cost efficiency. Unfortunately, understanding the fees and costs associated with investment advice and services can be pretty complex. Excessive fees are regularly associated with larger settlement awards and can be hard to justify. It is important to assess fees against the advice and services being provided to ensure fair value.

When financial advisers outsource the investment advice to third parties it is important to understand what services the different parties are providing and what they are charging for those services.

The initial disclosure documents provided by IFA’s usually refer to a range of possible fees, without being specific. Our IDD removes any ambiguity and confirms the actual fees payable.

If you would like to learn more about the A & M Investment Advisory Management Service please call us 0161 834 0545.