Press Release : For Immediate Release

1190 WordsDec 3, 20145 Pages
PRESS RELEASE: FOR IMMEDIATE RELEASE 3rd December 2014 Advisers can add 3% a year to your return With the abolition of commission, financial advisers now must charge fees, typically up to 1.00% per annum, for their investment advice and this change from supposed 'free advice ' has led some investors to favour a DIY approach in order to save money. However the latest research from Vanguard Asset Management shows that this may be a false economy as financial advisers can add 3.00% a year in value, i.e. returning investors up to 3 times the cost of their investment advice, and all without any magic skill in picking 'right ' funds. Scott Gallacher, a Chartered Financial Planner with Leicester based advisers Rowley Turton (IFA) Ltd. lists the seven key investment advice areas that Vanguard identified where financial advisers can add value in. 1. Asset allocation – significant but unquantifiable Your portfolio’s asset allocation, i.e. the percentage invested in various asset classes, is arguably the most important determinant of your future returns. Unfortunately whilst Vanguard concluded that whilst the value financial advisers added in this respect was significant, it was too unique to each investor (being based on each persons own time horizon, risk tolerance, and financial goals) to quantify. Gallacher felt that asset allocation could be worth up 4.00% a year ignoring the other factors and comparing a pure deposit approach with a pure equity portfolio but he agreed

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