In designing our wealth management service, we have looked hard at the challenges and common mistakes and created solutions that address these issues:
Tideway’s Horizon Portfolios are designed with specific objectives and tax environments in mind. We have portfolios aimed at generating capital gains, natural income yield and for flexible drawdown that lower volatility and segregate assets so that we should never be a forced seller of equities in a downturn.
High yield fixed income
In our drawdown portfolios and for generating income in ISAs we put a great deal of effort into investing in fixed income markets where we invest in hybrid capital securities with blue chip issuers to generate real returns above inflation and after fees. In pension drawdown accounts this also increases the certainty of meeting return targets for planning purposes.
Investing globally in equities
We invest globally in equities both for increasing long term dividend income and capital growth and will consider both active managers and lower cost collective funds.
Collective funds help diversify risks and avoid big irrecoverable losses. Through scale they also give access to investments that can't be readily invested in via our clients' individual accounts. In fixed income, for example, many of the attractive bonds we want to invest in have minimum investment amounts of £100,000 or more, making it impossible to get proper diversification unless that account value is more than £2m.
Active management and an ongoing advice service at an affordable all in price
Clients using Tideway Wealth's service face a cost hurdle of around 1.4%-1.7% per year, depending on the actual portfolio and how it's invested. These total costs cover advice, portfolio management, valuations and performance monitoring, account and custody fees, dealing fees and investment fund costs.
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