With Equity markets around the world experiencing significant volatility over the last few weeks, now more than ever clients need to ensure that their investments/funds matches their attitude to risk.
The global economic downturn of 2008 and the subsequent Eurozone crisis not only cast a shadow over Ireland but also had a direct impact on how the average person viewed investments. The well publicised stock market turmoil has meant that many investors now view all investment funds in the same way, they are all too risky.
This shift in investor sentiment has created a significant challenge for the life industry, how do we continue to meet client goals yet also provide an investment solution that can actually deliver the returns needed to meet those goals?
When Manning Financial meets with an investment, savings or pension client we undertake a short risk questionnaire which helps us make an objective assessment of our client’s attitude to investment risk. The questions cover a variety of areas, from client age and investment term, through to a client’s ability to tolerate loss and attitude to investment risk.
It produces a score ranging from 1 (very low risk) to 7 (very high risk). A copy of the answers and the results are printed and included in the investment report.
Whatever our clients’ appetite for investment risk, finding a mix of funds and assets that match their needs, and checking the funds regularly, is not easy.
Manning Financial offer our clients portfolio choices which specifically target risk. We want to insure our clients are protected in the short to medium term from any macro economic factors such as stock market fluctuations, Chinese economic slowdown or fluctuating oil prices.
One investment option we recommend to clients is risk targeted multi-asset funds which are actively managed and aim to stay within a risk range whilst maximising returns over the medium to long-term through unconstrained asset management.
Another option is a diversified portfolios of funds. Each portfolio has been built to match a specific risk profile ranging from low/medium risk to high risk. Each fund offers diversification by investment manager, fund and asset class.
If you are uncertain about what funds your pension/savings/investment are invested in or have not received advice over the last number of years, please feel free to contact me on 0212428185 or firstname.lastname@example.org for a no obligation consultation.