Investment and Wealth Management Advice

Investment Advice Built Around Your Objectives

There is no single investment strategy that is suitable for every client. Two people investing the same amount may require very different recommendations because their income, existing assets, tax position, responsibilities and future plans are different.

Before recommending an investment, we consider matters including:

• What you want the investment to achieve
• How long you expect the money to remain invested
• Whether you may need access to the capital
• Your attitude towards investment risk
• Your capacity to absorb a financial loss
• Your investment knowledge and previous experience
• Your other savings, investments, pensions and liabilities
• The effect of charges and taxation

This assessment helps us establish the level of investment risk that may be suitable and whether investing is appropriate at that point. In some circumstances, retaining accessible cash, repaying borrowing or addressing another financial priority may need to be considered before committing money to a longer-term investment.

Investment and Savings Options

The appropriate investment structure will depend on your objectives and circumstances. Our advisers can explain the features, risks, charges and tax considerations associated with different options before making a personal recommendation.

Stocks and Shares ISAs

A Stocks and Shares ISA provides a tax-efficient structure for eligible investments. Income and capital gains generated within the ISA are generally free from UK Income Tax and Capital Gains Tax, although the investments held within it remain subject to market risk.

The value of an ISA depends on the underlying investments rather than the ISA wrapper itself. We therefore consider both the suitability of the tax wrapper and the funds or assets held within it.

Collective Investments

Collective investment funds pool money from a number of investors and invest it across a portfolio of assets. Depending on the fund, these assets may include company shares, fixed-interest securities, property-related investments or a combination of asset classes.

Unit trusts, open-ended investment companies and other collective funds can provide diversification that may be difficult to achieve by selecting a small number of individual investments. However, diversification does not remove investment risk, and the suitability, costs and objectives of each fund still require careful consideration.

Investment Bonds

Onshore and offshore investment bonds can provide access to a range of investments within a particular tax structure. Their treatment can be complex, especially when withdrawals are made, ownership changes or a chargeable event occurs.

An investment bond should only be considered after reviewing the available alternatives and the client’s wider tax and financial position.

Managed Investment Portfolios

A managed portfolio may bring together a range of funds and asset classes within an agreed investment strategy. Depending on the service, investment decisions may be made on an advisory basis or delegated to a discretionary investment manager.

We explain how the proposed service operates, who is responsible for investment decisions, the level of risk involved and the charges that apply.

Building a Diversified Investment Portfolio

Concentrating too much money in one company, sector, geographical region or type of asset can expose an investor to avoidable risk. Diversification spreads investments across different areas so that the portfolio is not wholly dependent on the performance of one holding.

A diversified portfolio may include a mixture of equities, fixed-interest investments, cash and other asset classes. The appropriate allocation depends on the return being sought, the level of fluctuation the client can accept and when the money may be required.

Diversification cannot prevent losses or guarantee a return. Its purpose is to manage concentration risk and create a portfolio that reflects the client’s agreed investment approach.

Understanding Investment Risk and Capacity for Loss

Attitude to risk describes how comfortable an investor feels about uncertainty and changes in investment value. Capacity for loss considers the practical financial consequences if the investment performs poorly.

A client may feel comfortable accepting substantial market fluctuations but have limited capacity for loss because the money will soon be needed for retirement income or another important purpose. Conversely, someone with secure income, accessible savings and a long investment period may have greater capacity to withstand short-term falls.

Both factors must be considered. Selecting investments solely through a risk questionnaire, without examining the client’s wider financial position, may produce an unsuitable result.

Why Your Investment Timescale Matters

Investments are generally intended for medium- to long-term objectives. Their value may fluctuate, and a client who needs to withdraw money during a market decline could receive less than expected.

Before investing, it is important to retain sufficient accessible savings for emergencies and known short-term expenditure. We consider when the money may be required and whether withdrawals are likely before recommending an appropriate strategy.

A longer investment period does not remove risk, but it can provide more time for a portfolio to recover from periods of weaker market performance.

Tax-Efficient Investment Planning

Tax can affect the income and growth retained from an investment. Where appropriate, we consider available allowances and tax-efficient structures as part of the wider recommendation.

Tax efficiency should not be considered in isolation. An investment must still be suitable for your objectives, access requirements and attitude to risk. A tax advantage does not compensate for an unsuitable underlying investment.

The tax treatment of an investment depends on individual circumstances and may change in the future. Where specialist tax or legal advice is required, this should be obtained from an appropriately qualified professional.

Reviewing Existing Investments

An existing portfolio may have been assembled over many years through different providers and for different purposes. As circumstances change, it can become difficult to determine whether the overall arrangements still reflect the investor’s objectives.

When reviewing existing investments, we may consider:

• Current investment performance and volatility
• The balance between different asset classes
• Concentration in particular funds, sectors or markets
• Product, platform and fund charges
• Access arrangements and withdrawal restrictions
• Tax treatment and potential consequences of making changes
• Whether the investment remains consistent with your objectives and risk profile
• Any guarantees, penalties or valuable benefits that could be lost

A review does not automatically mean that investments should be transferred or replaced. Retaining an existing arrangement may be appropriate where it remains suitable or contains benefits that would be difficult or costly to reproduce.

Advice on Investing a Lump Sum

A lump sum may arise from savings, an inheritance, the sale of a property or business, a pension entitlement or another financial event. It can be tempting to invest immediately, but the first step should be to consider how the money fits into your wider plans.

We assess how much should remain readily available, whether any liabilities need attention and whether the capital may be required for future expenditure. We can then consider suitable investment structures and whether the money should be invested at once or through a phased approach.

The appropriate decision will depend on the client’s circumstances. Phasing an investment may reduce the risk of committing the entire sum immediately before a market fall, but it can also mean that part of the money remains uninvested while markets rise.

Ongoing Investment Reviews

Investment planning may require ongoing attention because markets, legislation, tax allowances and personal circumstances can change. A portfolio that was suitable when first established may require adjustment as a client approaches retirement, begins taking income or develops new priorities.

Where an ongoing service is appropriate, reviews may consider changes in your objectives, financial position, risk profile and investment holdings. Any proposed adjustments will be explained before they are made.

The scope, frequency and cost of an ongoing service will be set out clearly before it begins. Ongoing reviews cannot guarantee investment performance or prevent losses.

Our Investment Advice Process

Understanding Your Position

We begin by discussing your objectives, income, expenditure, assets, liabilities and existing financial arrangements. This establishes what the investment needs to achieve and how it relates to your wider plans.

Assessing Risk and Timescale

We assess your attitude to investment risk, capacity for loss, previous experience and intended investment period. We also consider your need for accessible capital and any foreseeable expenditure.

Researching Suitable Options

As independent financial advisers, we are not limited to the products of one investment provider. We can consider suitable options from across the relevant market when preparing a personal recommendation.

Explaining the Recommendation

We explain what is being recommended, why it may be suitable and what risks, costs, tax considerations and limitations are involved. You will have an opportunity to ask questions before deciding whether to proceed.

Implementation and Review

If you accept the recommendation, we can help implement the agreed arrangements. Where ongoing advice is appropriate, the service and review process will be explained separately.

Independent Investment Advice from Sturdy Edwards

Sturdy Edwards Financial Services provides established, independent financial advice from its office in East Grinstead. Our advisers help clients understand their investment options and make decisions based on suitability rather than short-term market predictions.

Our approach includes:

• A detailed assessment of your circumstances and objectives
• Consideration of your investment risk and capacity for loss
• Independent research across the relevant market
• Clear explanations of risks, charges and alternatives
• Coordination with pensions and wider financial planning where appropriate
• Ongoing reviews where an ongoing service is suitable

You can also meet our financial adviser team or explore our wider financial advice services.

Sturdy Edwards (Financial Services) Limited is authorised and regulated by the Financial Conduct Authority. Our FCA reference number is 190659.

View Sturdy Edwards on the Financial Services Register .

Frequently Asked Questions

Can You Review Investments I Already Hold?

Yes. We can review existing investments to assess their suitability, risks, charges, tax treatment and alignment with your objectives. A review does not automatically mean that an investment should be replaced.

How Do You Assess Investment Risk?

We consider your attitude to risk, capacity for loss, investment experience, financial circumstances, objectives and intended investment period. The assessment is not based on a questionnaire alone.

Can You Advise Me on Investing an Inheritance?

Yes. We can advise on investing an inheritance or another lump sum. Before making a recommendation, we consider your immediate financial needs, existing arrangements, tax position, longer-term objectives and whether part of the money should remain accessible.

Should I Transfer All My Investments to One Provider?

Not necessarily. Bringing investments together can make them easier to monitor, but a transfer may involve charges, tax consequences or the loss of valuable features. Existing arrangements should be assessed individually before any transfer is recommended.

Do You Provide Ongoing Investment Reviews?

An ongoing review service may be available where it is appropriate. We will explain what the service includes, how reviews will be provided and what it will cost before the arrangement begins.

Are Investment Returns Guaranteed?

No. The value of investments and the income from them can fall as well as rise. You may not receive back the amount originally invested, and past performance is not a reliable indicator of future results.

Arrange an Investment Review

If you are considering investing, have received a lump sum or would like to understand whether your existing portfolio remains suitable, our advisers are available to discuss your requirements.

Please contact Sturdy Edwards Financial Services to arrange an initial discussion about your investment and wealth management needs.