Investment Process

MS Wealth Investment Formula

We believe that with careful planning and a disciplined investment philosophy we can obtain the best returns for all of our clients.

Our philosophy has four core principles:

• Asset Allocation

• Portfolio Structure

• Multiple Specialist Managers

• Continuous Portfolio Management

Each of these aspects combined enable us to deliver to our clients a programme that provides personalisation, diversification, coordination and management.

It is a strategy geared towards achieving both short and long-term investment goals that makes sense in today’s dynamic financial climate.

Asset Allocation

Asset allocation is a vitally important aspect of the investment industry and studies have shown that it is the primary factor which affects the return that different portfolios may achieve. Asset allocation is considered a more important factor than both market timing and stock selection in the potential success of a portfolio.

We have a unique process which involves us carefully defining the objectives that you have and then building the right portfolio strategy using various assets. All of this is done with the primary aim of achieving the best results for you.

Portfolio Structure

This is again another important part of the process and involves us assessing where a portfolio can invest. The obvious areas are with shares, property, gifts and cash, but whatever is chosen the portfolio structure requires diversifying.

Within the US stock market for example, there are four sub classes of assets:

• large cap value

• large cap growth

• small cap value

• small cap growth

Therefore, you should not just own shares in US stock. You need to make sure that you are getting the right mix across your portfolio.

Spreading this principle of diversity across all of the asset classes should ideally be done to ensure you are not tied down in one area.

Multiple Specialist Managers

Our approach is based on an outsourced "Managers of Managers" process. Whereas within a more traditional approach it would be the adviser selecting an individual account manager, we believe the majority do not have the time or resources available to commit to such a specialist area.

Instead of this, we outsource the responsibility to a leading specialist who currently manages over £100 billion of assets for clients such as Deloitte, Qantas and Mercedes Benz.

They currently take full responsibility for:

• Selecting the fund managers

• Deciding how much each manager will manage

• Managing relationships with the underlying managers

• Evaluating managers on an on-going basis

• Replacing them when necessary

Essentially they act as your investment manager. Their objective is to ensure the delivery of consistent returns, low volatility and a high level of predictability which cannot be achieved through a single fund manager.

Continuous Portfolio Management

The right management of your investment portfolio is the key to your successful process and the model portfolios are reviewed quarterly to monitor this.

Your portfolio is under constant review as it may possibly change. This review ensures that it always fits in with your circumstances. If needed, we can rebalance your portfolio so it is back in line with the original percentages to maintain your investment philosophy going forward.

The value of your investment can go down as well as up and you may not get back the full amount invested.