In need of an investment review?

Fiduciary Wealth Team

Are you aware of the relationship which exists between risk and reward?

We often come across clients who think risk and reward are uncorrelated and that you can consistently produce excellent returns without taking any risks.

Funny how easy it is to invest... there is no magic formula... the investments that give the best returns carry the least risk... is that possible? Of course it is not.

Surprisingly it is not uncommon to find portfolios with a high concentration risk in one asset class, for example, high yield bonds, where the individual issuers (Note: no use of mutual funds to mitigate risk) are generally speculative grade bonds.

When we review the investments we identify considerable downside risk with the potential for losses quite considerable. Now trying telling the client who has been consistently been receiving returns of 7-8% per annum that they are taking more risk than what they should and that the investments are not aligned to their attitude to risk.

Guess what... they are not having it... the investments are secure provide excellent returns and have not endured any losses and therefore they would classify it as low risk.

Sadly clients rarely take advice until the investments have gone sour and they suffer loss to capital. The take action when the horse has bolted syndrome which causes so much pain!

If you feel you need your investments reviewed, a second opinion or an investment health check to ensure your investments are aligned to your risk tolerance; call us don’t wait until it is too late! To speak to an investment adviser about your investments and wealth management requirements call Tel: +34900102374 or email