Summary of our enhanced service.

To remain compliant we need to understand a client’s attitude to risk on an annual basis or if their situation changes throughout the year, this would be the maximum risk profile allocated to the client and will need to be confirmed in writing or by electronic signature request.

In addition to one of our advisers, you will be allocated a client administrator who will monitor your portfolio daily and will report directly to the adviser any slight change outside of set parameters, your dedicated administrator will also support in producing valuations, analysis reports and make sure your personal records and attitude to risk is current and up to date, the client administrator will also support your adviser so they’re able to give best advice in areas other than investments, such as insurance or tax efficient planning.

We will use our algorithm everyday to monitor global markets and keep abreast of events that could affect portfolio direction. If we believe one or more markets are likely to be affected we will alert all advisers and administrators to recommend to clients either? a reduction or increase in risk for that particular sector/market, to remain compliant these changes will need to be confirmed by recorded phone call, electronic signature or in writing with an instruction to accept or decline a change of risk, if unanswered the client administrators will continue to attempt to make contact with the client by telephone, text and email to inform of an electronic signature is waiting to be signed, once confirmed the changes will be made by your adviser and our in house Paraplanners will then produce the appropriate regulatory documentation required.

This enhanced active management service is far superior to anything in the industry, it will not only mean we will be quick to react in an up market for potential gains but also quick to react in a down market to preserve capital, however the algorithm, support service and software we will be using don’t guarantee performance and your capital is still at risk.

Is this service right for you?

We believe our enhanced service detailed above would be the right choice for the majority of investors who have an attitude to risk of cautious or greater, but not risk averse and any money invested should be for a period of a minimum of 5 years or longer. A unique active management service such as the above is expected to reduce risk and improve portfolios performance far greater than a slight increase in fees from a standard service to an enhanced active management service.

The enhanced service requires substantial resource and Woodward Financials would prefer new clients to invest over £100,000 but this may reduce in the future and remains at our discretion. We’ll accept transfers in from your current investment platform or pension provider. Please still get in touch if you are just short of our entry level so we can work on a plan to achieve this, by calling 01793 683573 or emailing enquiries@woodwardfinancials.co.uk

Frequently asked questions about our enhanced service?

Will I be taking more risk? No. The maximum risk will be what is agreed in your annual review, unless you notify us of a change of circumstance.

What if we are wrong?

If we recommend a reduction in risk from your standard agreed risk and the markets continue up?, you may miss out on investment gains, and alternatively if we recommend an increase in risk back towards your stand risk and the markets fall? this would erode the value of your portfolio.

How often would you be contacted? Perhaps once a month maybe longer, but also could be a few time a month when the markets are extremely volatile. Based on the last 12 months there was 13 occasions that would have required client confirmation which resulted in increased portfolio performance.

Accepting a change of risk or not?  If we believe a change is warranted we are recommending that you make the change.

What would the window be for accepting/declining a change in risk? the algorithm picked up the crash in 2020, signals were there 3-4 days before and hence when we are up and running in April we are looking every day, Why speed is needed, If we make a sell trade it can take a fund manager potentially up to 36 hours to make the change so the quicker the better, more than likely the market will continue to fall and thus preserve as much capital as possible, we are then looking for an opportunity to increase risk back to your normal chosen risk.

Can I switch between standard and enhanced? good question, The service we wanted to put in place was either far more regulation and less employees or less regulation and more employees, we are scaling up to meet demand so there is flexibility to switch, paying an additional 0.25% more than a standard fee the benefits will far exceed our standard service, I don’t envisage many would go back to a standard service.

How much contact will I have with the administrators? The client administrators will have many more tasks to support you and your adviser, but they will go with your wishes with regards to regular contact, quick chat every week, fortnight, once a month whatever you prefer.

2020 Crash, what would have happened in a negative market?

Research shows that if a portfolio of world indices eg FTSE, Dow Jones etc were held with the appropriate asset allocation for a moderate risk portfolio and a reduction in risk was recommended to a conservative portfolio.

The enhanced active management service would have performed 13.32% better than a standard investment service.

In Monetary terms a £100,000 portfolio for a moderate risk portfolio would have circa £61,000 exposed to investments that would have been likely impacted to the downside in the 2020 crash, and the remaining £39,000 in lower risk investments that may have benefited but will for the purpose of this example assume there was no change in value for this proportion of the portfolio, eg cash, gilts, bonds held.

Focusing on the £61,000 an unchanged risk would have reduced this proposition of the investment down by 28.903% to £43,369

Meaning from the initial investment the value would now be £82,369 a loss of £17,631 or 17.631%

Reducing risk to conservative the amount of exposure to downside risk would be £23,700 with this proposition of the investment down by 28.903% to £17,042

Meaning from the initial investment the value now would be £93,342 a loss of £6,658 or 6.658%

Confirming the enhanced active management service would have performed 13.32% better than a standard service in negative market.

A fund based portfolio would have performed slightly differently depending on the decisions made and the lower risk proposition likely gained, this offsetting some of the losses.

Taking up our enhanced service or opting for our standard service is your choice, our standard service is still far superior than most advice firms who charge in some cases 1.5% or higher for a very basic service with the mantra of “invest for the long-term” no matter what market conditions are like or state of world economies, who then sit back and watch the portfolios go up and down for a mediocre return over the long-term, only glancing at the portfolio and making an odd change during the year.

I have a disability can I still have this service?

Before i was asked this question, I didn’t appreciate how much our service would benefit those will an illness, disability or poor eyesight. Our support agents can talk through your investments or walk you through our client portal giving that helping hand if needed.

Our standard service

Due to enhanced regulation, fees and levies, our standard annual management fee remains at 1% slightly lower than the enhanced management service detailed above.

The value of investments may fall as well as rise. You may get back less than you originally invested