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HOW TO MAKE YOUR MONEY WORK HARDER FOR YOU

HFS Milbourne Financial Services - July 2007
Financial Advisers in Guildford

HOW TO MAKE YOUR MONEY WORK HARDER FOR YOU
Iain Halket, Director at HFS Milbourne Financial Services

When it comes to investing money, whether through pensions, ISAs, property or the stock market, it is wise to seek professional advice. There are numerous options to choose from and obtaining expert opinion from an independent source will help ensure you achieve the best return on your investment.

At HFS Milbourne we start by assessing a client’s attitude to risk, using a questionnaire to determine acceptable levels of return. We then recommend an appropriate asset allocation i.e. a split of investments across UK equities, international equities, property etc. as appropriate.

To develop the investment portfolio, rather than simply selecting one insurance company or fund manager, we use a ‘multi manager’ fund approach. This gives us the option to choose from a much wider range of funds, and means we can select the best performing investments for the client.

A balanced performance portfolio
When allocating the investment we aim to diversify across several areas so that should equity start to fall in one investment, the remaining funds will usually be fixed or increasing. We look for non correlating assets without spreading the risk too far and wide, and look for consistency in the out-performance level.

The general principle for a realistic and balanced portfolio would be a spread of the following investments: 35% UK equity funds, 20% international funds, 20% commercial property and 25% fixed interest and cash. This will of course vary depending on the risk you are prepared to take.

Investment areas
Each investment option offers differing levels of return and your final choice usually comes down to attitude to risk. We would suggest choosing a balanced portfolio selecting from the following:

National Savings products
The least risky investment choice, returns are not necessarily impressive and some involve tying your money up for long periods of time. However they are stable and in some cases tax-free. Options include National Savings Bank accounts, savings certificates and various forms of savings and income Bonds.

Individual Savings Accounts (ISAs)
Generally more suitable for the longer term, ISAs are a tax-efficient way to place cash savings and investments in equities, bonds, collectives and insurance policies. The cash portion is usually a deposit with a bank or building society and because it is an ISA, interest is not taxable.

Property
This offers great potential for capital growth, as the value of most property will increase over time.

Equity
The best for long performance and short term versatility, investing in the shares of companies listed on a stock exchange offers the possibility of gaining not only a dividend - a proportion of the company's after tax profits distributed to shareholders - but also a capital appreciation.

Remember high risk doesn’t always mean high return.

For further details, please contact Iain Halket who specialises in analysing fund managers performance data on 01483 468888.

HFS Milbourne Financial Services is authorised and regulated by the FSA, and specialises in advising clients on personal wealth management in addition to corporate financial planning. For further information, visit www.hfsmilbourne.co.uk.

Iain Halket
Director
HFS Milbourne Financial Services

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