Investing Your Pension

Investing Your Pension

Investment return is a widely discussed topic. What should you expect? Will your portfolio outperform the market? Which are the right funds to pick? So many questions, and without hindsight, no right or wrong answer.

Our experience over the last 25 years has taught us that each client has a different result or goal for their financial planning. Therefore, each requires their own, bespoke investment portfolio service. This is why Capital Wealth Partners has launched its Portfolio Partnership Service for you.

Expert advice and talented fund managers, packaged cost-effectively

This investment service uses all of our skills as advisers, coupled with the vast resources and experience of some of the world’s leading discretionary fund managers, who manage billions of pounds in global assets. It forms a tax-efficient and cost-effective solution for your investment management. By giving you access to institutional rates, our partnership ensures you never pay retail rates for funds. This can see costs cut from 1.5% to just 0.5% for some leading funds. We have no dealing charges for stocks, and work with all of the leading pension, ISA and SIPP providers to offer a seamless solution.

A personal investment manager to work with you

You will have your own personal investment manager with whom you will have direct contact. They will manage your portfolio for you at their discretion. However, should you wish to have input, they are always happy to hear from you and discuss investments in specific sectors or stocks.

So what are the options when it comes to investing your pension?

Broadly speaking, there are two routes you can go down when investing, but our Portfolio Partnership Service offers you a third:

1. The self invest option

You can select a handful of funds yourself, based on articles you read in financial journals or other financial press. However, picking the best performer of the previous year is a not a good idea, as future fund performance rarely reflects what happened in the past.

As markets fluctuate, you will need to take a daily interest in the performance of your investments and be in the position to act quickly should the market start to move.

Fund fees can start from as little as 0.5% and go up to as high as 5% plus. However, the most common fees are about 1.5% for retail investors.

2. Financial adviser option

Allowing a financial adviser to make the fund picks for you may sound logical. However, they will usually charge you between 0.5 and 1% per annum to do this.

You will then also need to pay retail rates on the funds they select, making the total cost more like 2 – 2.5%, rather than the 0.5% you may have thought you were paying.

3. Portfolio Partnership option

In our opinion the best approach is an investment partnership between both Capital Wealth Partners and one of the discretionary fund managers chosen from our panel.

This partnership calls on a vast amount of market research and global data to inform investment selections. It creates a bespoke, cost-effective investment portfolio that can be accessed online 24-hours a day.

The portfolio we create for you can be transferred to a different manager or even self-managed, at any point. There is no minimum tie in period and no entry or exit fees.

The cost of the service is between 0.85% and 1.25% subject to the value of the portfolio.

A watchful eye on performance

The discretionary fund managers we use to manage your investments have been selected based upon their investment performance and fee structures. We constantly monitor the performance of client funds invested with them to ensure they are delivering what is expected. Should we find that your portfolio is not outperforming the benchmark indexes, we can easily transfer the management of your assets to another manager.

Measuring Performance

We measure our portfolio performance against Asset Risk Consultants (ARC). This takes into account the performance of 50 investment managers to give us a real world comparison of investment performance in a diversified portfolio. Below you will find performance statistics for three of our portfolio options.

Balanced Portfolio

Our balanced portfolio contains a spread of investments providing exposure to global markets as well as the security of long term interest products such as bond funds.

Each portfolio is carefully balanced with a mix of dividend and capital growth investments to ensure you lock in value as the year progresses and offers further diversification against a global market down turn.

We are proud to have outperformed the ARC index in every period for the last five years and have a 13.2% annual average over five years.

Downside Risk

Downside risk should always be taken into account when assessing the right strategy to follow.

The graph on the right shows the downside effects of different events in history and how these events affected a balanced portfolio.

Although losses where made in these periods, the effects were limited as the investment managers are able to act quickly to protect the value of the portfolio.

It is important to note that subject to investors leaving the funds invested for twelve months after these events, all losses were recovered.

Benefits of Portfolio Partnership vs other options

The table below compares the benefits of each of the three options available to you. As you will see from the table, not only does our portfolio partnership offer you a full range of services, it is also more cost effective.

Self Managed
Investment Management
Financial Advice
Risk Monitoring
Discounted Fund Charges
Zero Transaction Charges
24 Hour Online Access

Find out more

If you are looking for a professional investment solution that carefully balances charges and performance to make your money work harder for you, then the Capital Wealth Partners Portfolio Partnership Service could be just what you are looking for.

You can find out more about the Portfolio Partners service with Capital Wealth Partners on our Portfolio Partners Page.

Contact a member of our investment team and we will be happy to discuss the portfolio in more detail and answer any questions you might have.

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