Wealth Planning Tailored for You

Wealth planning tailored for you

Wealth Planning tailored for you

© 2014 Grant Thornton UK LLP. All rights reserved. 1 1

Contents

Your family blueprint - understanding you 02

A family blueprint 03

Looking at you and your family 04

Building the foundations of your planning 05

Developing a successful investment strategy 06

Developing a successful investment strategy – the theory 07

Asset allocation is key 08

Our investment philosophy 09

A typical asset allocation 10

What does diversification look like? 11

Annualised total returns % 12

Our commitment to you 13

What can you expect 14

Why us – our expertise in this area 15

About Grant Thornton – introduction and awards 16

Notes 17

Your family

blueprint -

understanding you


© 2014 Grant Thornton UK LLP. All rights reserved. 3

A family blueprint – would normally cover the following areas

Providing for you and

your family's lifestyle

• Cash flow planning – helping make

money available when it is needed

• Short term spending plans – seeking

competitive short term returns

• Investing wisely – aiming to grow

your assets

• Reviewing your existing plans – do

they do what it says on the tin?

• Generation planning - what are the

family's plans, what will they need

and when?

• Protecting and providing for you

and your family.

Taxation

• Working with all of your advisers –

to focus on the bigger picture

• Providing an integrated tax and

wealth advisory service

• Reducing tax on investments by

choosing the right type of

investments for you

• Increasing tax efficiency by

planning strategically.

Core long-term

investments

• Developing a successful

investment strategy

• Understanding risk – managing and

mitigating it where possible

• Implementation and management of

the investments – making it easy

for you

• Controlling investment costs – it's all

about net returns.

Pensions

• Plain speaking on pensions –

what do the legislation changes

mean for you?

• Understanding and applying these

changes to your circumstances –

make it all easy to understand.

Broader Issues

• Preserving wealth and succession

planning

• We are able to advise you on

taxation and how it affects you.

Your blueprint may not include all areas as it depends on your circumstances,

requirements and priorities



Looking at you and your family

Understanding you

• What is important to you financially?

• What do you need and want to achieve from your

planning? By when?

• What do you currently have in place to help you

achieve your goals?

• What would it mean to you and your family if this

didn't happen?

• What obstacles do you see in achieving your financial

aims?

Our role in advising you

• Once we know what you want to achieve and

understand your priorities, we can build a family

blueprint to map your journey

• We can explain the options and advise on the best

route to get you to where you want to be

• We will cover any risks involved and how we can

either manage or reduce these for you

• Your blueprint will be reviewed with you to ensure

that it is adapted to any changes in your circumstances

or priorities.

As well as understanding what you have, we need to understand what resources you

need to make your priorities happen



Building the foundations of your planning

You

Identify & agree your

goals

Work with you to

prioritise your goals

Establish what is

needed to meet your

goals

Agree and implement your plans

Review

The big question is how do we do this successfully?

As part of our advisory service to you, we will work with you to build a

foundation for your needs.

The diagram above illustrates how we will work with you to build

your blueprint.

One common area of planning for our clients is developing a

successful long-term investment strategy to dovetail with their

blueprint and help to achieve their goals. This is explained in the

following sections.

Developing a

successful

investment strategy



Developing a successful investment strategy – the theory

Key principles • No-one can reliably predict the future and we do not

attempt to do so. Steady, consistent returns (net of

tax and charges) are a surer way of growing a

portfolio than trying to pick next year's market

winners

• Strategic asset allocation is the key driver of

investment performance

• Diversification of asset classes within a portfolio

reduces risk and increases risk-adjusted returns

• Take the emotions out of investing by having a

robust and consistent investment policy.

Summary

A clearly defined investment policy is important to give

you the opportunity to achieve your objectives of

providing for the family's needs both now and in the

future

• All investments involve some degree of risk

• Ensure that risk, taxation and charges are

professionally managed.



Asset allocation is key

Our approach ensures that we limit your exposure to any one single asset class, in

order to build a tailored portfolio for your family's needs.

0

2

4

6

8

10

12

14

16

0 5 10 15 20 25 30

Av

era

ge A

nn

ual

Retu

rn (

%)

Standard Deviation (a measure of risk)

Efficient Frontier Cash

Index-Linked Gilts Gilts

UK Commercial Property UK Equities

European ex UK Equities North American Equities

Japanese Equities Pacific ex Japan Equities

Global Emerging Markets Equities

The efficient frontier shows a set of optimal portfolios that offer

the highest expected return for a selected level of risks.

Index-linked Gilts

UK Commercial Property

Gilts

Cash

North American equities

Pacific equities

Japanese equities

UK equities

Emerging Markets equities

European equities



Turning the theory into practice –

Our investment philosophy

Our investment approach

• We have a client-focused and service-driven culture

• We believe that a thorough understanding of our

clients' circumstances, views and goals is the

foundation of good advice

• We have a clearly defined investment policy and

devote significant resources to ensuring that it is

consistently delivered and continuously developed

• Our solutions are bespoke and tailored to your needs

– other solutions may be used if appropriate.

Our investment policy

• Asset allocation is the single most important factor

in determining portfolio returns

• Diversification reduces risk by spreading

investments across a range of assets that typically

react differently to each other

• Collective investment funds are usually more

appropriate and cost-effective than managing a

portfolios of individual stocks and shares

• Portfolios are designed to keep the management of

investments as easy and economical as possible

• Periodically reviewing and rebalancing a portfolio is

important to maintain the strategic asset allocation

and manage risk

Success is measured by returns after tax

and charges

We will work with you to build your family's blueprint based on our expertise and knowledge.

By professionally managing risk, taxation and charges we will give you a realistic opportunity for

long term income and/or growth.

A typical asset

allocation



What does diversification look like?

UK Gilts - 5%

Sterling Corporate Bonds - 9%

Sterling Strategic Bonds - 13%

Property - 13%

UK All Companies - 14%

Europe Ex UK - 13%

North America- 12%

Japan - 3%

Asia Pacific Ex Japan - 3%

Global Emerging Markets - 3%

Absolute Return - 10%

Cash - 2%

We would work with you to build a portfolio to meet your needs, ensuring that you

are comfortable with and understand what you are investing in.

The asset allocation above is provided as an example only, this should not be taken

as what may be appropriate to your individual needs.



More importantly – How has it done? Annualised total returns %

0%

2%

4%

6%

8%

10%

12%

3 yrs 5 yrs 7 yrs 10 yrs

This portfolio

ARC steady growth

Inflation (CPI)

3 month cash deposit

• Most of our clients are looking to beat cash, inflation and want performance to

be measured against this

• Having analysed a variety of comparisons for performance of our portfolios, we

have selected the Asset Risk Consultants (ARC) Private Client Indices,

a Guernsey based investment consultancy

• ARC samples the performance of the portfolios of 45 leading Private Client

Wealth managers, so the index shows how we did against our peers

• This provides you with the reassurance that we are reviewing performance

against inflation, cash and the ARC Indices

• The graph shows how a sample portfolio has performed against ARC steady

growth, inflation and cash. This illustrates that our selections have performed

well against the measures over each of the periods, for this portfolio.

• Past performance is not an indicator of future performance.

Our commitment

to you



What can you expect

We are Chartered Financial Planners and provide independent

wealth advice.

• Provide our formal advice and recommendations

• Implement the agreed strategy with timescales for

delivery

• Agree the frequency of reporting and planning meetings

to provide a bespoke service to you.

• Be available throughout the year should you need to

contact us.

As part of our advisory service to you,

should you decide to appoint us, we

will:

• Work with you to Build your Family Blueprint

• Analyse and advise to arrange a bespoke plan for you,

with flexibility to adapt to your changing needs

• Provide a detailed analysis on risk, returns, charges and

tax to meet your requirements

• Build an asset-allocated investment portfolio to meet

your needs

Outstanding service from us comes as standard



Why us – Our expertise in this area

Team of

Chartered and

Certified

advisers

Independent Financial

Advisers –

working with you to

agree and build

your blueprint

Team of Chartered

and Certified advisers

- Experts

Supported by a

highly focused &

experienced

research team –

living our values

Substantial

experience

with high

value clients

– it's all we do

Personal bespoke

advice and service

- from a solid firm

Work with tax

– to get advice right

for you

YOU



About Grant Thornton – introduction and awards

• One of the world's leading organisations of

independent assurance, tax and advisory firms

• Combined turnover of $4.5 billion

• Over 38,000 people based in over 100 countries.

• UK member firm of Grant Thornton

International Ltd

• Turnover of £512 million

• Led by over 185 partners, with 4,200 people

• Operates from 25 offices

• A Financial Planning practice that provides

services in conjunction with the firm's core

business.

grant-thornton.co.uk

Private Client Practitioner

Top 25 Financial Planning Companies

2011, 2012, 2013 and 2014



Notes



Documents

Wealth Planning Tailored for You