By investment we mean placing lump sums in the money and investment markets. Your objective may be capital growth, provision of income, or a mixture of both.
We will simplify matters for you by recommending a product and portfolio that is suited to helping you achieve your objectives in a tax efficient manner.
For clients who wish, we offer an Enhanced Portfolio Review Service whereby your investment is reviewed every three months and you are informed about any recommended changes and the reasoning behind the recommendation.
With any investment the underlying assets are subject to different types of risk depending on the type of asset.
Typical types of risk include: volatility risk; liquidity risk; inflation risk; interest rate risk; default risk,
Our Investment Process
We take these risks into consideration when designing multi-asset portfolios for our clients. We use a process that uses both a top down and bottom up approach. The starting point for each portfolio is the strategic asset allocation which then incorporates a tactical overlay that is regularly reviewed. The asset allocation will include a greater or lesser degree of downside protection depending on the risk rating of the portfolio.
When assigning individual investment funds we will generally use a core and satellite strategy. The core funds are to provide access to asset types not normally available to retail investors and will usually have adopted full UCITS III investment powers.
Funds are individually selected based on risk adjusted past performance and the views of rating agencies on the fund's future potential performance. Rational Finance also regularly attend meetings where fund managers present on their investment process and methodology.
We will also consider the appropriate tax wrapper (ISA, Unit Trust/OEIC, Investment Trust, Investment Bond, Individual Securities, onshore, offshore).
