The Future Money Approach
Every investment strategy is unique.
That's why your Financial Planning Consultant is the best person to:
- analyse your current situation
- map out your future financial needs and objectives
- develop an investment strategy
We work with your Financial Planning Consultant to create and manage all types of investment portfolios.
We use sophisticated planning tools that help calculate the likelihood of you reaching your investment goals if you continue along your present course, and
help you choose the right investment.
Simplified Prospectus/Key Features Document The Simplified Prospectus contains important information regarding the funds, including charges, tax and fund specific risk warnings etc. You should read the Simplified Prospectus before investing in any MGTS Future Money Fund.
The value of investments can go down in value as well as up.
Choosing the right investment for you
A framework for effective portfolio construction
It is possible to minimise investment risk by using a mathematical process to combine individual investment funds into a bespoke investment portfolio.
We provide your Financial Planning Consultant with a framework within which to build your investment portfolio:
- Establishing your needs, objectives and attitude to risk
- Identifying the right tax structure for you
- Determining a mix of asset classes
- Selecting individual funds within each asset class
- Reviewing the performance and ongoing suitability of your portfolio
Risk and probability
Probability theory enables us to quantify risk and make rational choices about which risks are worth taking.
Understanding and analysing risk as part of your investment decision-making process means you are able to manage your assets in a way that can 'optimise' your returns. This is known as asset allocation.
What is asset allocation?
This is a process that significantly affects how your returns might deviate from
what you expect.
It makes it possible to increase your expected return while maintaining the same risk level, or to keep the same expected return while reducing your risk.
Your Financial Planning Consultant will use the process to decide how your investment should be split among the major asset classes to match your
appetite for risk.
Diversification is key
Spreading your investment across different types of funds or securities reduces risk.
Historical analysis shows that it increases the chance that as one investment is falling in value another is rising.
The Myners Report
In March 2001 Paul Myners was commissioned by the Chancellor of the Exchequer to review institutional investment in the UK.
The report highlighted the weight of academic evidence suggesting that asset allocation decisions can be critical determinants of investment performance.
It also stated that the process was an under-resourced activity - even in the institutional investment area.
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