Full Independent Financial Reviews
We specialise in providing a first rate consultancy service to individuals, the self employed, business owners, senior executives and company directors. Key to offering this service is the independent financial review whereby following an initial meeting we gather all details on existing financial arrangements, life cover, savings, income protection, investments, pension arrangements and other assets & liabilities.
This information forms the basis of our 'gap analysis' and following this analysis we meet with our clients to appraise them of their current overall position, suggest amendments where warranted but most importantly identify the priorities, financial goals and mechanisms for achievement of these goals.
Annually, we meet with our clients to review all the various arrangements as the efficiency of dealing with financial affairs is directly related to the ongoing maintenance and review of same. The annual review and subsequent meetings will ensure that all financial arrangements are maintained at maximum efficiency.
Contact: wmadvisors@invesco.ie
Investment
Investment Portfolio Construction & Management
Investment Philosophy:
At Invesco the investment philosophy is based on a structured, disciplined and risk controlled approach to portfolio management. In order that we protect our clients' capital and enhance their wealth we adopt a macro economic approach to investing that is top-down and asset allocation driven. The top-down approach looks at the “big picture”, focusing on key macro economic indicators (Interest rates, economic growth, Inflation rates) for each geographical region.
After this process, and depending on the stage in the economic cycle, assets are allocated in line with the clients risk profile and our overall economic outlook. We believe that this ‘route map' is the best pay-off, and studies indicate that more than 90% of the variation in return is determined by asset allocation decisions.
Relying on a proven approach to investment success, we:
- Construct a portfolio that manages risk while maximizing long-term performance.
- Help clients establish their optimal asset allocation.
- Select a “best in breed” mix of investments that provide our clients with the best possible return for their personal level of risk tolerance.
- Monitor results against set objectives.
Investment Process:
Invesco independently research and analyse all the investment products and fund management teams available to the Irish investor. We have developed an investment product matrix where our investment committee select the best product or investment manager in each risk category - from minimal risk bank deposit to higher risk international equity funds. Our investment committee meet every month to consider if any new or existing investment products should be included on the “buy list”. In addition, the committee review the current “buy list” to evaluate if the fund performance and product terms still merit inclusion.
At Invesco our goal is to achieve a well diversified and balanced portfolio in terms of geographic, sectoral and stock spread thus ensuring that no single investment or asset class will exert a disproportionate influence on the clients overall portfolio.
This level of diversity is fundamental to any portfolio, and for smaller portfolios, can often be achieved through with-profit and unit-linked funds. Investing in unit-linked managed funds allows investors to purchase a diversified portfolio of equities, bonds, property and cash while simultaneously maintaining liquidity in a tax efficient manner.
At Invesco, we divide the investment process into three distinct stages:
Planning Stage:
- Evaluation of clients objectives
- Understanding clients attitude to risk
- Clients Investment time horizon
- Strategic asset allocation
Implementation Stage:
- Asset Analysis
- Asset selection
- Portfolio optimisation
Managing Stage:
- Risk / Return analysis
- Monitoring absolute and relative performance
- Reallocation of assets to changing economic and individual circumstances
Our investment process draws heavily on the concepts of risk-adjusted return, diversification, and asset correlation to help you better understand and make decisions on your investment portfolio. By considering each asset's return per unit of risk (i.e. its Risk-Adjusted Return), employing diversification (i.e. "don't put all your eggs in one basket"), and understanding the correlation between your assets (i.e. to what extent those assets move together), we can construct portfolios with the greatest possible expected return for any given level of risk.
Our client portfolios are based on three distinct risk categories:
Risk Categories Equity Range
- Cautiously Managed Fund: 20% - 40%
- Balanced Managed Fund: 40% - 65%
- Aggressively Managed Fund: 65% - 100%
Contact: wmadvisors@invesco.ie
Bespoke Property, Equity & Commodity Funds
Invesco Wealth Management is committed to bringing innovative products to our clients. Therefore more often than not this means building an investment from scratch rather than taking "off the shelf products" from insurance and investment companies.
In doing so we ensure that our clients are getting a good value investment and one which meets their needs as opposed to someone else's.
To date we have structured numerous bespoke investments for our clients in property (UK and European), equity and commodity funds.
Contact: wmadvisors@invesco.ie
Pension Planning
Self-Administered Pension Funds
Small self-administered plans are extremely tax efficient and provide an excellent opportunity for directors to make provisions for their retirement.
Our SSAPF provides an alternative to conventional personal pensions by offering the individual control of their pension arrangements. Our SSAPF's enables company directors to control their retirement funds without the requirement to use an insurance company.
SSAPF's are suited in the main to owner-managed companies generating reasonable profits where the Directors/Partners are drawing reasonable salary levels.
The key advantages of a Self-Administered Pension Scheme are: -
- Flexibility in relation to the ongoing payment of contributions into the fund.
- Control and choice of investment i.e. equities, property, etc.
- Full transparency on fees/commissions.
Our experience has shown that significant value can be added through our knowledge of the increasingly complex tax implications of pension planning.
Invesco Trustees Limited is an approved Pensioneer Trustee, and designs and runs Small Self-Aministered plans to meet clients' requirements.
Contact: wmadvisors@invesco.ie
Personal Pensions & Personal Retirement Savings Accounts (PRSAs)
For the Self-Employed and those in employment where the non-pensioned employment, we offer independent, professional and objective advice to individuals in relation to personal pensions and PRSAs.
Personal Pensions and PRSAs can allow
- People who are not members of occupational pension schemes to make tax efficient retirement provisions.
- The self-employed to have a more liberal arrangement with transferability to Company Pension Schemes and vice versa.
- Pension provision for those who are not economically active.
Contact: wmadvisors@invesco.ie
Scheme Design
Ensuring your benefit package is compliant with recent legislation and competitive in the market place is essential. At Invesco we specialise in tailoring pension plans to meet the needs and desires of both employer and employees.
Design issues would cover:
- Retirement ages
- Retirement Options
- Eligibility rules
- Contribution rates
- Investment
- Death in service and disability benefits
- Trusteeship
- AVC's
- ARF's
Contact: wmadvisors@invesco.ie
Protection
Keyman & Company Director Shareholder Protection
Business Protection is about having properly structured life assurance policies to deliver money into the right hands at the correct time. A survey by the Irish Marketing Surveys showed that almost 70 per cent of Irish business had not arranged any form of Partnership/Co Director Protection, to enable them or the company to afford to buy out the shares of colleagues who die, where desirable.
In addition, many small to medium size businesses are heavily dependent on the skills, experiences and business contacts of a few key employees/directors, the death of these could have devastating effects on the business. Therefore, one may need to consider putting Key Person assurance in place, i.e. life assurance on the Key Person with the benefit payable to the company.
Partnerships & Limited Companies – What problems would you face?
- You would need to employ someone else to see the business through a difficult period – and that could involve considerable extra money.
- You may have the right to buy out your partner's share – but would you have sufficient funds available?
- If not, you could end up in business with your former partner's dependants – who will have inherited the share in the partnership, even though they probably won't be able to make any contribution towards the success of the business.
- Even worse, perhaps, they might decide to sell their share in your partnership to someone else – possibly a competitor of yours. This could make the operation of your business very difficult.
How life assurance can help
Suitable policies can be arranged on the lives of each of the partners so that, if one of you dies:-
- Money will be paid to the survivors, enabling you to buy out your ex-partner's share.
- The funds will also enable the business to keep going, employing short-term staff to handle the immediate workflow crisis. This gives you the time to ensure that you recruit the right person as your new long-term partner.
Contact: wmadvisors@invesco.ie
Personal & Family Protection
Family Protection – Life Cover
The main purpose of Family Protection is to make sure you won't have money problems if a misfortune like an accident, death or illness happens in your family. Basically, all life cover protection contracts are designed to replace lost income and provide a money benefit when it is needed most.
By arranging this Life Cover, your family will receive a lump sum to cover any expenses they might have such as mortgage repayments and regular household bills. They could also invest it to provide a regular income.
Mortgage Protection
This cover is required by your Bank or Building Society to be used as security for your mortgage. Cover can be arranged on a reducing or level basis and can incorporate critical illness if required.
Critical Illness
Critical Illness Cover will give you peace of mind as it provides a lump sum payment on the diagnosis and certification of a prescribed serious illness. With this cover, you make a monthly payment which guarantees you a lump sum if you suffer from one of the specified critical illnesses. This can help with medical bills, mortgage repayments, childcare costs and day to day expenses, meaning you can concentrate on getting back to full health once again.
Income Protection/Permanent Health Insurance
An Income Protection Plan is a way for you to guarantee yourself an income in the event of being unable to attend work due to long-term illness, injury or accident. Without earnings/salary, it may be difficult to afford medical treatment and pay for all the day to day expenses we all take for granted. You and your family's standard of living would suffer greatly.
Under this arrangement up to 75% (subject to certain limits) of your earnings can be protected. In the event of long-term illness, your earnings would be paid during the course of the illness through to recovery, or age 60, whichever occurs first.
It is normal to have an initial “non-benefit” period for each illness occurrence i.e. an initial period of illness during which no benefit is paid – this is called the “deferred period”. The longer the deferred period, the more reasonable the cost of the contract. You can choose a deferred period of 13, 26 or 52 weeks.
The cost of Income Protection Cover is fully tax allowable. Benefits during periods of payment are subject to PAYE deductions.
Occupation is a key element in the pricing and underwriting of Permanent Health Insurance. For example if your work involves working at heights, then you would be considered a higher than normal risk and the premiums would be more expensive.
Capital Acquisitions Tax
Capital Acquisitions Tax (CAT) covers both gift and inheritance taxes. The distinction between the two is now largely irrelevant, as the rate of tax applying to both is currently 20%.
Assets passing from one spouse to the other on death, whether under a Will, by way of intestacy or by survivorship (e.g. jointly held assets) are exempt from CAT. The amounts which other people can take tax free depend on:
- Their relationship to you.
- The value of gifts/inheritances received by beneficiary since 5 Dec. 1991 within the same "Group".
Contact: wmadvisors@invesco.ie
International Expertise
As the Irish partner of the International Benefits Network, (IBN), we can manage global projects, utilising regional specialists around the world.
Today's business environment is truly international. Mergers, acquisitions, and other types of cross-border investments have become commonplace as successful organisations continue to seek profitable growth.
These organisations know that to succeed outside their home country they must accommodate cultural and structural differences in each country where they have local business operations.
This is especially true in the area of employee remuneration where the package needs to be competitive, motivational and cost effective in local terms. At the same time, organisations want an arrangement that is integrated as far as possible with their global benefit philosophy.
International Benefits Network is a worldwide network of independent actuaries, employee benefit consultants and brokers. Established in 1989, the network consists of recognised leaders in employee benefit consultancy in more than 40 countries.
In 2005, IBN members employed over 3,000 staff, including more than 120 actuaries and 300 consultants.
Contact: wmadvisors@invesco.ie