What you can expect from us and what we will deliver

Centralised Investment Proposition

We are a service orientated  financial services company providing a holistic advisory service dedicated to guiding its clients to financial independence.

We understand that individual client circumstances are different and their financial needs and priorities change over time. We are regulated by the Financial Conduct  Authority (FCA), which is an independent watchdog that regulates Financial Services in the UK.

This document will provide information about the range of services we offer. It also explains the investment strategies that we use with our clients. Our investment proposition involves assessing your tolerance to investment risk, regularly monitoring your fund selection and rebalancing.  The process is designed to ensure that your portfolio continues to be managed in line with your agreed objectives and tolerance to risk.

Attitude to risk questionnaire
We use a short risk questionnaire to gather information used to assess your tolerance to risk and capacity for financial loss.  The questionnaire is provided by a specialist provider of risk management and modelling tools to the financial services industry.   

The risk analysis tool
We use a risk analysis tool to analyse your responses to the questions on the risk questionnaire.  This provides an indication of your potential tolerance to investment risk using a scale of 1 to 5, where 1 represents a low tolerance to risk and 5 represents a high tolerance to risk.  You will be provided with a description of the risk category which has been determined after completing the questionnaire.

We will discuss with you the risk category which has been calculated by the tool and what this may mean for your investment portfolio.  We will assess your knowledge and experience of investments and discuss with you potential alternative risk categories and risk descriptions in coming to a conclusion as to the most appropriate level of risk tolerance for you including your capacity for loss.

We will then use the selected risk category to choose an appropriate portfolio designed to keep within your agreed tolerance for investment risk.  

If your attitude to risk is category 1 or 2 or your capacity for financial loss is very low we may recommend, after thorough discussion with you, cash deposits.
The descriptions of the 5 risk categories used to assess your tolerance for risk are shown in the appendix to this document.

Your need to diversify your portfolio
A better option than investing in only the stock market is to spread your money between several different asset classes, typically equities, property, fixed interest and cash. Diversifying your portfolio can help to reduce risk and increase your potential returns. This is because different types of assets often behave differently under the same economic conditions. If you therefore invest in several types of assets, it’s likely some will perform well even if others are declining in value.

It is therefore important to have exposure to a blend of different assets to help drive long-term performance and reduce the risk of being overly exposed to any single asset class.

Getting the right mix of assets
Our aim is to simplify this complex investment universe and provide you with professional, unbiased financial advice based on your personal goals and objectives, and to maximise your investment returns whilst helping to reduce your risk. Our advisers are highly skilled, qualified and up to date with investment, taxation and pension developments. Suitable investment advice is at the core of our service to our clients. To help us deliver this, we have developed a robust investment process that we explain below.

The Portland Wealth Limited investment process

  1. Analysis of current assets.
  2. Client risk profile.
  3. Applicaiton of tax wrapper.
  4. Asset allocation.
  5. Fund selection.
  6. Ongoing review.
Our investment process aims to identify the right spread of investments to match your appetite for risk and returns and maximise the likelihood of you reaching your investment goals.

The key to this is in establishing the correct balance of different types of asset classes as this is known to determine up to 90% of the variation in the returns of a portfolio over the long term.

Step 1 – Review your existing investments
We gather detailed information on all the investments that you currently own.

Step 2 – Understand your tolerance to risk
We ask you a set of questions designed to determine your attitude to risk when investing, your time horizon, future cash needs and your objectives. Aided by an independent modelling tool we will determine your risk profile on a scale of 1 to 10. The risk profile is then discussed to seek agreement with you including your capacity for loss.

Step 3 – Choose the correct tax wrappers to minimise tax
Once we have established your optimum asset llocation we will ensure you are not paying more tax than you need to. We consider the income tax, capital gains tax and inheritance tax implications of your current portfolio and any new investments to be made.  We also weigh up the tax benefits of tax wrappers such as investment bonds, ISAs, unit trusts and pensions to ensure you maximise the tax shelters available.

Step 4 – Establish your required asset allocation

The modelling tool is built upon a large volume of historical data on equities, fixed interest, cash and property. Using this data and your answers to the questions you were asked, it recommends an asset allocation for your portfolio that has a higher probability of delivering returns in line with your objectives at the level of risk you are comfortable with. The recommendation will be diversified across different geographical areas and asset types. The system also calculates where your current portfolio is on a scale of 1 to 10, so that we can see where it differs from our recommended asset allocation. The objective is to ensure you sit on the “efficient frontier”, which seeks to optimise your returns for a given level of investment risk you are willing to accept.

Step 5 – Construct the portfolio to meet your asset allocation
We will then either recommend a rebalancing of your existing portfolio, or a new portfolio of investments tailored to take account of your risk profile and corresponding asset allocation, your investment preferences and objectives. We will outline a range of well researched solutions that will give you access to leading investment companies.

Step 6 – Monitor your portfolio to ensure it continues to meet your requirements
As the asset allocation of your portfolio changes over time due to fluctuations in the performance of the underlying funds, we review your portfolio on an on-going basis to ensure it remains in line with your attitude to risk and investment objectives.

Our Portfolio Offerings – Using outsourced fund selection

We will recommend an investment solution that will take account of your individual needs, your attitude to risk and capacity for loss.  In appropriate circumstances we will recommend a number of portfolio offerings from leading platform providers.  Our recommended solution will always be chosen to fit your overall investment circumstances and objectives.

In the event that none of our portfolio offerings fits with your overall investment circumstances and objectives we can then discuss your individual requirements and will recommend an alternative solution after completing comprehensive product and provider research from the wider market.

1.    Risk targeted investment funds
Our risk targeted investment portfolios bring together a number of  fund management groups to provide you with access to a fully diversified investment portfolio which is specifically designed to reflect your attitude to investment risk.   This means that you benefit  from diversification across asset classes, different fund management  techniques and investment strategies, which aim to reduce volatility and improve the potential for consistent investment performance.

The manager of the these risk-targeted funds will regularly rebalance their underlying portfolios to ensure that your investment continues to keep in line with your agreed tolerance to investment risk.

You will be offered an annual review meeting to examine your current and future investment objectives and any changes to your tolerance for investment risk.  

2.    Managed model portfolio service
These are portfolios of suggested funds  which have been selected to fit within a strategic asset allocation (a mix of different investment types and assets) which is consistent with your attitude to investment risk.  The strategic asset allocation is designed to be aligned to your chosen risk category, which has been determined through the risk analysis process. Your portfolio will be regularly reviewed and rebalanced to ensure that your portfolio always has the best perceived blend of funds to meet its stated investment objective and continues to keep in line with your agreed tolerance to investment risk.

We offer from a choice of five portfolios, which are aligned to risk categories1 to 5. These include options for income and growth.

You will be offered an annual review meeting to examine your current and future investment objectives and any changes to your tolerance for investment risk.

3.    Discretionary fund management
For larger portfolios, usually in excess of £100,000, we maintain relationships with two specialist discretionary portfolio management companies.  If we recommend this service to you we will discuss your requirements and facilitate an introduction to a private investment manager who will be appointed to manage a bespoke portfolio in accordance with your needs. Your appointed portfolio manager will discuss your investment objectives with you and the cost of this service.

Review Services
Harpur Wealth Management offer two levels of service (the advisory service and the advisory planning service) allowing us to meet at regular intervals to discuss your overall investment objectives. We will discuss whether an on-going service is appropriate and if so, which service level would meet your needs.

For clients with an investment portfolio of less than £40,000 we would recommend that reviews take place on an ad hoc basis. We will charge £200.00 (excl. VAT) for these review meetings.

Administration of your investment solution

The risk rated portfolios and model portfolios can be administered using a ‘Wrap Account’.  A Wrap is an online platform utility which assists advisers and customers with the arranging and reporting of fund and portfolio investments across a range of investment types and tax wrappers.  

As part of our discussion around your investments we will assess whether a Wrap is suited to your requirements.  If this is the case then we will recommend a Wrap and provide you with full details as part of our recommendation. 

Investment wrappers available

Our Investment Proposition can be used with the following range of investment wrappers:

Taxation
Portfolios held within ISAs and SIPPs are considered tax efficient and, subject to keeping within the investment limits and rules for these wrappers, there will not usually be any tax liability arising on investment gains on the portfolio.  Any dividend distributions on the underlying investment will, however, be paid net of a 10% income tax credit which cannot be reclaimed.

Investment gains made on the Unit Trust Portfolios could be subject to Capital Gains Tax (CGT) but only if they exceeded the annual CGT exempt allowance.  Many people do not make regular use of their annual tax-free CGT allowance, meaning that a tax saving opportunity is wasted.

We will explain to you the taxation position of your portfolio as part of our recommendation.  Please inform us of any  change to your financial circumstances as this may impact on the future taxation position of your portfolio.

Our advice costs are detailed in our document, ‘Key Facts About our Services and Costs’, which should be read in conjunction with this investment proposition.

In addition to our advice costs there will be annual charges on the underlying funds within your portfolio and there may also be charges imposed by the selected wrap platform.  

Typically the underlying funds within your portfolio will have an annual management charge in the region of 1% but this varies between providers:
You will be provided with a personalised illustration which will detail all of the applicable charges including our advice charge, the fund charges and any applicable Wrap Platform charges.  The selection of Wrap Platforms will be kept under review to ensure that the service they provide in relation to their cost is in our clients’ interests.

ADVISORY PLANNING SERVICE
We truly believe that regular reviews are essential to ensure your financial plans remain on course to achieve your goals, aspirations and financial objectives. Listed below are the main topics we will discuss with you during your face to face meeting.
  1. Client review agenda
  2. Changes to client circumstances.
  3. Review of current and future financial objectives.
  4. Summary of investment performance since last review.
  5. Key drivers to performance.
  6. Summary of economic outlook.
  7. Review of clients attitude and tolerance to risk.
  8. Discussion of suggested changes to investment strategy and asset allocation.
  9. Review of protection and mortgage needs.
  10. Review of Inheritance Tax position and estate overview.
  11. Action plan-introduction to professional advisers such as Accountants and Solicitors if required.
Clients will receive the following level of service:
ADVISORY  SERVICE
We truly believe that regular reviews are essential to ensure your financial plans remain on course to achieve your goals, aspirations and financial objectives. Listed below are the main topics we will discuss with you during your face to face meeting.

Client review agenda
  1. Changes to client circumstances.
  2. Review of current and future financial objectives.
  3. Summary of investment performance since last review.
  4. Key drivers to performance.
  5. Summary of economic outlook.
  6. Review of clients attitude and tolerance to risk.
  7. Discussion of suggested changes to investment strategy and asset allocation.
  8. Review of protection and mortgage needs.
  9. Review of Inheritance Tax position and estate overview.
  10. Action plan-introduction to professional advisers such as Accountants and Solicitors if required.
Clients will receive the following level of service:
TRANSACTIONAL SERVICE
This is a ‘one off’ initial advice service for client’s where an on-going service is either not required or after discussion we agree is not appropriate to your circumstances.  We will still assess your financial requirements and, after research, will make a recommendation that is both suitable and clearly explained.

This service is more likely to be suitable for clients who are seeking a recommendation to address a specific objective, which could include:
Clients will still receive receive the following even though there is no on-going charge:
Payment of our fees
Before you incur any charges we will always agree with you the service you require and our specific fee for your confirmed service.

You have the option to pay our fees directly to us or alternatively where possible it may be able to be facilitated through a deduction from your investment. We will discuss your preferred method of payment with you.

Where our fee cannot be facilitated from the initial investment amount you will be required to make the payment separately.

If you pay for an on-going service that is facilitated via your investment the actual costs of your on-going fee may increase as the fund grows.

If you should chose to bring the Client Service Agreement to an end, this can occur at any time without penalty.

Disclaimer
Harpur Wealth Management Limited is authorised and regulated by the Financial Conduct Authority (FCA). The FCA is the independent regulator of financial services in the UK. Harpur Wealth Management Limited is entered on the Financial Services Register (www.fca.gov.uk/register) under reference 738074.

Harpur Wealth Management Limited registered company address is 19 Goldington Road, Bedford MK40 3JY and the registered company number is 09426887.

This website is aimed at UK Residents only. The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

Contact details are as follows - Tel: 01234-924620 and Email: info@harpurwealth.co.uk

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