Investment Process

There are many companies out there that claim to offer financial advice and deciding which one to choose can be daunting. So what makes Wealth Matters different?

It’s all about WRAPS™ or Wealth Matters Risk-Assessed Performance System!

As a client of Wealth Matters you want an outstanding investment experience, and our trademarked investment methodology WRAPS™ is designed to deliver you just that.

The WRAPS™ system allows you to easily invest in different asset classes (equities, property, bonds, cash etc.), in different geographical regions of the world and in different sectors of an economy, in order to spread risk and diversify.

The core aim and principal strategy of WRAPS™ is to grow your wealth by using a structured asset allocation model specific to your risk profile.

Constant reviews, ongoing advice and regular communication form the backbone of solid investment advice and we believe that WRAPS™ achieves these goals.

 

How WRAPS™ works

WRAPS™ has been developed using academic research and logic. History proves that over the medium to long term, the market consistently rises and investors who patiently stick around long enough will benefit. And because of this we believe, it’s about ‘time in’ the markets rather than ‘timing’ the markets.

So WRAPS™ is about taking the long view, and having a rational, well thought out investment strategy.

How WRAPS™ keeps costs to a minimum

WRAPS™ invests in low-cost, tracking funds rather than actively managed funds, which means you avoid the hefty fees charged by these types of fund managers.

Our portfolios comprise a combination of such ‘index’ funds, (or as we prefer, ‘non-predictive’ funds) from reputable fund houses that control their costs.

We also favour scientific or evidence-based based funds to give equity tilts to small company and value stocks. This should add long-term value to your portfolio.

These savings generated by the cost-control approach directly impact upon the returns you will enjoy on your assets.

Access to your funds

WRAPS™ allows you to view your investments on-line 24/7 via one of our preferred wrap operators or wealth platforms e.g. Transact or Nucleus. It’s no more complicated than internet banking.

You have access to your monies very quickly as needed (factoring in the rules the various tax wrappers like pensions, NISAs and bonds) and none of the funds we use have exit charges.

 

WRAPS™ in more detail

We believe in sensible investing with modest and prudent aims. We want you to make money but not to take unnecessary risks with your money.

 

So we don’t try to second-guess the markets or ‘pick’ winners because we don’t think it is possible to consistently choose higher performing funds.

Instead, WRAPS™ is built in academic research and logic. Investing requires one to use assets other than cash (which is used for saving).

The main purpose of investing is to achieve a better return than cash and inflation. This means taking on more risk but it has the potential of a greater return.

Investing means more than 10 years. The old adage that ‘time is money,’ sums up precisely why it is important to invest for the long term. We believe, it’s about ‘time in’ the markets rather than ‘timing’ the markets.

History proves that over the medium to long term, the market consistently rises and investors who patiently stick around long enough will benefit.

So WRAPS™ is about taking the long view, and having a rational, well thought out investment strategy.

 

While most elements of the investing environment are out of anyone’s control one thing that can be controlled is costs.

 

Hefty fees and charges can have a significantly negative impact on your investment returns.

By managing all your investments on a single wealth platform rather than having them scattered amongst lots of different providers, you can benefit from economies of scale.

And because WRAPS™ invests in low-cost, tracking funds rather than actively managed funds, we can avoid the hefty fees charged by these types of fund managers.

Our portfolios comprise a combination of such ‘index’ funds, (or as we prefer, ‘non-predictive’ funds) from Vanguard, Blackrock and Legal & General.

We also favour scientific or evidence-based based funds from Dimensional to give equity tilts to small company and value stocks.

These savings generated by the cost-control approach directly impact upon the returns investors enjoy on their assets.

 

Like all realistic and experienced investment specialists we work on the basis that risk and return are directly related.

 

If you take on more risk in your portfolio, then you should expect a greater return, but you will most likely incur greater volatility.

Conversely, if your portfolio involves little risk, then it will tend to deliver lower returns but will also tend to be less volatile over the medium to long term.

Diversification is therefore essential to control risk and volatility in your portfolio.

That’s why the mix of investments – the asset allocation – is the most critical decision that has to be made when investing.

In consideration of this, WRAPS™ offers 7 core portfolios, each one offering a different trade off between risk and return.

One of them should suit you to a ‘T’, whatever your investment ‘personality’ may be.

 

To some extent we can control risk and volatility through asset allocation and diversifying your portfolio.

 

WRAPS™ allows you to view your investments on-line 24/7 via one of our preferred wrap operators or wealth platforms e.g. Transact or Nucleus. It’s no more complicated than internet banking.

You have access to your monies very quickly as needed (factoring in the rules the various tax wrappers like pensions, NISAs and bonds) and none of the funds we use have exit charges.

WRAPS™ uses direct investments (collectives or mutual funds e.g. unit trusts and OEICS offered by the chosen investment house) which we regard as by far the most transparent form of fund investment.

We review your portfolio, risk tolerance and strategy at regular intervals agreed with you and we rebalance your portfolio annually in line with your original objectives, in order to lock in gains and minimise losses.

We believe in, and promote, absolute transparency and openness, so we make a commitment to communicate with you on a regular basis.

Every quarter, with the season we produce a WRAPS™ News Bulletin, available via our website. We will email to you let now it is ready to view.

The bulletin comprises an overview of the last 3 months and includes: useful guidance, analogies, explanations and reassurance.

There is also a Morningstar report, which details how your portfolio is invested and how it has been performing, together with featured articles, a focus fund and more.

These are the areas where you should expect to be able to exercise control. The unpredictable behaviour of share prices, however, is beyond anyone’s control! We implore you not to try to avoid the ‘white noise’ and only look at your investments quarterly.

We believe that this level of knowledge, clarity and openness will provide for an agreeable and rewarding investment experience, which is what WRAPS™ was conceived for.

 

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