Investment Selection

We focus on collective investments such as Unit Trusts, OEICs and Investment Bonds for the following reasons:

  • Investment Style – different fund managers have different investment styles which perform under varying market conditions. A combination of approaches encourages diversification within the portfolio.
  • Investment Management – the fund manager’s job is to manage the fund on a daily basis rather than in a more ad hoc way often provided by a stockbroker. In our view the better managers tend to be more talented than their stockbroking rivals.
  • Research & Analysis – These funds have analysts and dedicated research teams to advise on stock selection within the portfolio.
  • Diversity – Each fund is diversified by investing in between 30 to 100 individual shares and importantly many have exposure not just within the UK market but overseas as well.
  • Taxation – A fund manager can trade stocks in a fund without precipitating a taxable gain or loss to the end client. If stocks are held directly by a client each time a trade is made this will give rise to a taxable gain or loss. This can lead to investment decisions being made as a result of tax rather than investment considerations.

Interested? Contact us here.