Updated: Jan 17
Tailoring Risk to Age
Our objective for our clients is to reduce their risk as they progress through the life stages. This allows them to achieve high levels of growth pre-retirement through mid-high exposure to equities, which is then reallocated to safer assets (such as bonds and cash funds) to preserve clients’ wealth as they retire.
This is done by positioning clients into our Core or Tactical portfolios when they join us. Whether a client is placed into Core or Tactical depends on whether they want more or less involvement in the management of their portfolios.
Core Portfolios are reviewed bi-annually or annually, depending on significant market movements. They are designed for clients who don’t require to be frequently consulted on investment decisions. As these Core Portfolios have fewer transactions in a year, transactional charges will be lower.
Tactical Portfolios are appropriate for clients who take an active interest in the wealth management of their portfolios and so want more frequent contact and reviews. These portfolios see more transactions in a year and this is reflected in slightly higher charges.
Clients really participate in market growth through the equity exposure in these portfolios. Generally, as they move through the life stages, they’re often positioned more cautiously. This is where Reeves portfolios can be tailored to clients’ needs as they grow older to lower the volatility of their holdings - yet still provide a sustainable level of growth.
Once a client is within three years of retirement, they are recommended to transfer their holdings to our Short-Term Portfolio to safeguard their holdings. The Short-Term portfolio is defensive and is specifically designed for capital preservation rather than growth to limit the consequences of market downside. The fund has a third of its holdings in cash with the remaining two thirds being in bond and cash funds to benefit from some growth while experiencing a lowered level of volatility.
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Please note: Investments can go down as well as up and you may not get back the original capital invested. This newsletter is for information only and should not be seen as advice or a recommendation to take action.