Tower Hill Associates - Investment Planning

Investment Planning

Nearly forty years of academic research has shown that investment managers are unable to outperform markets by anything greater than the amount expected by chance.

There remains a trade off between risk and reward and money works for you simply by being invested in the markets rather than through “active” management.

Tower Hill Associates has therefore developed a client-centred investment approach designed to deliver a more successful investment experience.

For an initial chat to discuss your requirements, call us on 020 8891 6375 or contact us for more information. If you would prefer to receive further information on the New Model Investment Management Process before contacting us then please click here.

Investment Success

Tower Hill Associates New Model approach to Investment Management is about increasing the probability of investment success by concentrating on those aspects which have the greatest impact on investment returns namely:

Strategic asset allocation – determined by your risk tolerance, time horizon and return requirements.
Diversification – combining assets with different characteristics within your portfolio, allows you to achieve better risk adjusted returns. Surprisingly adding certain higher risk asset classes such as value and small cap equities, emerging markets and commodities to your portfolio can have the net effect of lowering overall risk and increasing investment returns.
Maintaining discipline – we will help you stay the course and not be influenced by the short term perspective promoted by the City and media in general.
Minimising cost – through investing in institutional funds, reinvesting commissions, using tax-efficient ‘wrappers’ to increase after tax returns; rebalancing infrequently – only when the benefits of doing so outweigh the costs.

Creating your portfolio

‘Strategic asset allocation’ is initially shaped by your attitude to risk where an objective assessment of your risk profile is undertaken using a scientifically-validated questionnaire. This personal risk assessment is then fine tuned to take into account your time horizon and the investment return you require to achieve your financial objectives.

The result is a choice of 7 risk graded diversified investment strategies with robust risk control parameters.

For each strategy low cost asset class (tracker) funds are used to capture market returns and this includes the rapidly expanding Exchange Traded Fund range. Tracker funds are used because they have a significantly lower cost ‘drag’ than active funds and as a result increase the probability of better returns.

We arrange an annual review with you to assess your portfolio returns in the context of your financial objectives. This incorporates a decision on portfolio rebalancing - based on a cost benefit analysis.

We will use a ‘portfolio administration service’ to manage your portfolio. This will create a single, consolidated view of all your investments: savings, pensions, equities, etc. - offering you huge advantages. See Portfolio Administration for more information.

For a free initial chat to discuss your individual requirements, please call us on 020 8891 6375 or contact us for more information.

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Portfolio Structuring

  Assumptions:

  £500k portfolio of which existing ISAs £100k
  Asset allocation 50% equities and 50% bonds

Portfolios A, B and C have exactly the same asset allocation but Portfolio C will produce the greatest after tax returns. This out performance is simply achieved by placing the right investments in the right tax wrappers. Portfolio optimisation is cost effective for investment sums of at least £250k held within a single charged portfolio administration (wrap) platform.

The greatest out performance is likely to be achieved by those requiring more bond orientated portfolios, higher rate tax payers or the “under ISAed”