Stocks and Shares ISA
Investing in a Stock and Shares ISA allows any growth or income to be sheltered from further tax. I believe that the investments should be made into a diversified portfolio which gives exposure to different asset types and to different markets. The asset categories used are as follows:
Bonds, Property, UK Equity, North American Equity, European Equity, Japanese Equity, Asia Pacific Equity and Emerging Market Equity
The amount held in each category is determined according to the optimal asset allocation for a given risk level. I use a risk assessment tool developed by Distribution Technology which uses actuarial modelling to produce an optimal asset mix for each risk level from 1 to 10.
I have set up model portfolios which fit the most common risk profiles. These have been set up on a fund platform as this makes administration of the funds and tracking the performance much easier.
I have chosen the Axa Elevate platform to create these as it offers a wide range of funds to invest in and is competitively priced.
The portfolios are constructed using a mix of tracker and actively managed funds. Tracker funds are much cheaper and are appropriate in developed markets where the benefits of active management are outweighed by the cost of this service.
Tracker funds aim to track an index and I use these in the developed equity markets (UK, North America, Europe and Japan).
Active funds are used for Property, Bond, Asia Pacific Equity and Emerging Markets where I believe there is value in paying for active fund management.
The selection of active funds uses an objective process based on both forward looking and historical measures.
For more details on the selection process click here.
Please contact me by email: or give me a call on 01347 868196 if you want to discuss any aspects of your financial planning.
