Investments

Clients seek our advice on several areas including investing for capital growth and income, building a diversified portfolio, and tax-efficient investing, including pensions, ISAs, and other tax wrappers. We appreciate that each client’s needs, priorities, and life stages are different. When it comes to investments, we consider all these factors, alongside your attitude to risk.

One of the most dangerous phrases for an investment manager is “This time is different”, which has proved wrong on almost every occasion that it has been used. However, we also have to live with “Past performance is no guide to the future” and reconciling the two is never easy.
John Dalton, Consultant

 

Our investment process

Our core investment principles are based on two simple tenets. The first is the pursuit of long-term real returns. We look for sustainable investment returns which have the potential to beat inflation and fees – meaning the purchasing power of your income and capital will grow over time.

The second is the importance of an effective understanding of risk and how to manage it; employing a well-constructed, sustainable, and robust investment process results in a well-diversified portfolio.

We ensure our advisers have the tools and flexibility to build individual portfolios that best meet your needs, allowing you to achieve your goals without taking undue risk.

Portfolios normally hold a broad spectrum of investments which aim to provide diversification. The range of investible assets can include:

  • Cash
  • Bonds
  • Equities
  • Commercial property
  • Alternative assets such as infrastructure and absolute return funds

Within each asset class we are agnostic as to instrument and make use of collective funds, ETFs, investment trusts and individual stocks and shares to optimise liquidity and minimise cost.
Rahim Mohamed, Investment Manager

 

Specialist and higher-risk investments such as Enterprise Investment Schemes (EISs) and Forestry Investments may be included as appropriate.

Every portfolio is bespoke, and we will discuss investment ideas and approaches with you in detail. In addition to identifying an appropriate level of risk for you, we will take you through the key decisions you need to make about how your portfolio will be managed:

Safe custody of assets

Your assets are always held separately from ours with our designated custodians or other regulated counterparties, who are subject to strict rules regarding the holding of client money and assets.

Discretionary or advisory management?

A client’s decision to work with us on a discretionary or advisory investment management basis is very much a personal choice. It depends on how much input, control and time you want to put into your own portfolio management.

Discretionary investment management

Many of our clients prefer to work with Thomson Tyndall on a discretionary investment management basis. Where this is the case, an overall strategy is agreed and thereafter day-to-day decision making is delegated to your investment adviser, who will manage your portfolio and make changes when necessary. Clients who work with Thomson Tyndall on a discretionary management basis do so for a number of reasons:

  • Speed – As every investment decision does not require pre-approval by the client, discretionary management increases the speed of decision-making which is particularly useful in a volatile market.
  • Reduction in paperwork – The regulation of advisory management has led to increased paperwork and administration which can be both complex and time consuming. Many clients prefer a professional investment manager to take on this responsibility on their behalf.

As you would expect, this is a highly regulated activity which ensures safeguards are put in place for your protection.

Many of our clients begin on an advisory basis, with more involvement at first, then over time move onto management on a discretionary basis.

 

Advisory portfolio management

We also offer portfolio management on an advisory basis. This is where we can make recommendations based on your circumstances and attitude to risk; however, we require your agreement before any changes are made to the portfolio.

Some clients like to use a mix of both discretionary and advisory management. For example, they might mandate management of part of their portfolio on a discretionary basis but retain management on an advisory basis of their pension.

 

Responsible investing and Environmental, Social and Governance (ESG)

At Thomson Tyndall, we are aware of the considerable environmental challenges the world faces.  We are also mindful of the responsibility we have, as investors and shareholders, to consider the impact of the companies in which we and our clients invest.

At the same time, we recognise that individual clients will have their own views about how far they wish to go to incorporate responsible investing into their investment planning.

We will therefore work with our clients to determine ways of aligning their investments with their values, and to take advantage of the opportunity that investments on the green-ethical spectrum can offer, within the context of their wider financial plan.

Active or passive management style

There is a long running debate in investment circles as to whether it is better to invest in Active funds, where the managers use their skill to choose the underlying investments, or Passive strategies such as Exchange Traded Funds (ETFs), where the fund typically invests proportionately across all the companies in an index such as the FTSE100. Active funds tend to be slightly more expensive than passive ones and we are always mindful of the cost of investing for our clients. Relatively few active managers consistently beat the index after charges, but some do and add significant value. In our experience, there are also stages of the market cycle where one style will outperform the other and other times where the advantage will be reversed.

We are not remunerated by fund managers to choose any specific funds. As a result, we are completely impartial and have no preference for any one management style or fund type. Our priority is to put our clients first and assess which management style will provide the best value for them and ultimately be in their best interests over time.
Simon Akroyd, Consultant

We work with our clients to establish whether an active or passive investment management style will best suit their circumstances and preferences – we can accommodate either style or it can be a combination of the two.

Whether your preference is discretionary or advisory investment management, an active or passive investment style, Thomson Tyndall’s highly qualified and experienced investment managers can accommodate and partner with you to maximise your investments and meet your financial goals.

Should you wish to get in touch and organise a first meeting to discuss your investment management needs and goals, please contact us by telephone on +44(0)20 7100 3667 or by email at info@thomsontyndall.com.

 

The value of investments may fall as well as rise and you may not get back what you put in.

VCTs (Venture Capital Trusts) and EIS (Enterprise Investment Schemes) are very high-risk investments and you may lose your capital. The tax treatment of these investments depends on your individual circumstances and may be subject to change in future. These products are not suited to everyone and individual advice should be sought before investing.