PERSPECTIVE - Key Features

1. How PERSPECTIVE works

The PERSPECTIVE service comprises five distinct stages designed to ensure that your financial needs, aspirations and objectives are assessed and agreed, a suitable investment strategy implemented and regularly reviewed in line with your changing needs and long-term financial objectives.

This process is reflected in this diagram:

Perspective Process new

Our consultants will help you establish your objectives and then review your existing savings and investment arrangements in consultation with our experienced in-house investment experts. We will then provide you with our conclusions and, if appropriate, recommend a portfolio of well-researched funds which we consider to best suit your needs using our Investment Strategy service.

We believe that the suitability of an Investment Strategy should be reviewed on an ongoing basis rather than being treated as a one-off exercise. Your investments are therefore regularly monitored by our investment team on an ongoing basis.

A key element of the PERSPECTIVE service is a formal annual review to compare the performance of your investments in relation to your agreed objectives.

2. Benefits of PERSPECTIVE

  • PERSPECTIVE brings a fresh level of clarity to investment for individuals in respect of:
    • Objectives
    • Charges
    • Performance
  • The service provides clients with a high level of service and access to investment expertise
  • We have an in-house, professionally-led investment team whose role is to provide our clients with the performance required to achieve their investment objectives
  • Funds used in the Investment Strategy service are well-researched and regularly monitored, thereby increasing the likelihood of outperformance
  • Rossborough Financial's independence, objective assessment of underlying funds, rigorous selection process and in-house experience and expertise means your money is invested with some of the top performing funds from the world's leading fund managers

3. Investment matters

i. Investment choice

  • Over the last two decades, the financial services industry has grown significantly. As a result, investors have a vast range of investment choices
  • Not only must investors consider asset classes, investment style, country and regional selection, they must also understand their own risk tolerance and investment needs
  • Faced with this complexity of choice, we believe investors can benefit from professional advice to identify the appropriate investment strategies
  • Rossborough Financial has the professional expertise and resources to provide an investment solution that provides exposure to a range of funds with different strategies
  • Our Investment Strategies give our clients access to a well-managed selection of thoroughly researched funds as a long-term investment solution
  • Rossborough Financial uses these Investment Strategies to assist clients in meeting their financial objectives
  • Full details of the Strategies available to you are detailed in the Investment Strategy factsheets

ii. Investment options

There are six Investment Strategies within the PERSPECTIVE service, as follows:

  • Managed Growth Strategy
  • Equity Growth Strategy
  • Global Growth Strategy
  • Asia Growth Strategy
  • Sterling Fixed Interest Strategy
  • Absolute Return Strategy

iii. Investment expertise

Rossborough Financial's in-house investment knowledge, experience and expertise is largely unique amongst Channel Island financial advisers, and is at a level not ordinarily found or indeed expected from traditional practitioners in the financial advice industry. This enables your investments to be placed with some of the world's leading fund managers and monitored on an ongoing basis.

Our Investment Strategies aim to provide reliable performance, based on our investment team's successful long-term track record of fund selection and exposure to the world's main markets and major asset classes.

Not only does our investment team regularly monitor the performance of all the funds that make up our Strategies, but they also have an active dialogue with the fund managers themselves, via face to face meetings or by participating in conference calls, so that they can understand the managers' investment approach at any given time.This enables us to recommend changes to the Strategies when the investment climate or the fund managers' investment approach dictate.

In addition to the ongoing monitoring of the funds and the Strategies, the Rossborough Financial Investment Committee meets formally each quarter to discuss the Investment Strategies and the underlying funds held. The performance is presented formally to the Committee and the in-house investment experts review how each Strategy has performed against its benchmark and how each fund has fared versus its sector and peers. The Committee will decide whether any changes are required. Investors will receive a recommendation together with a request for their approval to switch.

4. Administration

Rossborough Financial believes that clients should have access to investment funds at a reasonable cost. This is achieved using a retail dealing "investment platform" administered by a leading provider. This non-insurance based platform enables the investor to buy funds with relative ease but some of the other significant advantages are listed below. We consider that this is a cost effective way of holding investments and there are clear benefits in consolidating your investments under one common roof in such a way, including:

  • Online access to your investments
  • Immediate liquidity without exit penalties
  • Simplified administration
  • Consolidated reporting
  • All transactions recorded on same system
  • Reduced compliance burden, i.e. proof of ID, address, source of funds required only once at outset

 5. Reporting

i) Valuations

As well as online access to your investment holdings we will send all investors valuations every six months. If adhoc valuations are required then there may be an additional charge.

ii) Benchmarks

We believe that as an investor it is important to be able to judge clearly the performance of your investments. We therefore benchmark the performance of each of the Investment Strategies against the appropriate IMA (Investment Management Association) or equivalent offshore fund sector average, as appropriate. Such comparisons will accompany your regular reporting.

6. Charges

Please see separate "Contribution and Fee Schedule" sheet for more detail.

7. Switching and rebalancing

Our ongoing fund analysis will mean that, from time to time, we will recommend that a fund held within an Investment Strategy should be switched to a more suitable fund. We will write to every investor who holds that Strategy explaining the reason for recommending the sale and giving the reasons why a new fund should replace the existing fund. 30 days after such a letter is sent we will make the switch for all investors who have confirmed that we may proceed.

The nature of the funds underlying each of our strategies is such that an investor should not be disadvantaged by such a 30 day delay. Each fund held should be viewed as a well-diversified portfolio in its own right and any switch would ordinarily be to a fund with a similar mandate. Any switch recommendations will therefore not be for the purposes of altering the overall strategy. Switch recommendations will ordinarily be based on expectations of medium to long-term fund returns and are unlikely to reflect short-term concerns regarding the fund to be switched.

We consider that each of the funds held within an Investment Strategy is a portfolio in its own right and, as such, an investor in PERSPECTIVE effectively holds a number of separate portfolios, each following a similar mandate. Over time it is inevitable that some of these funds will perform better than others and the original equal weightings to these funds will become unequal. We would not ordinarily recommend rebalancing the Strategies to redress such an unequal fund split but would always review this approach should our research suggest that a rebalancing would benefit the Strategy. In such a case we would send a written recommendation to each investor and await approval as for switches above.

For PERSPECTIVE to work efficiently in terms of administration charges, regular reporting, and to maintain the integrity of our Investment Strategy performance data, only clients who confirm their approval of our switch and rebalancing recommendations will be able to remain part of the PERSPECTIVE service. If an investor does not respond to our recommendation letter or chooses not to follow our recommendation then we will need to establish a new basis of client relationship in terms of charging (please see "Contribution and Fee Schedule" sheet) and reporting.

8. Frequently asked questions

Q. How do I go about redeeming my existing investments?

A. Our consultants will review your existing investments and establish their ongoing suitability given your financial objectives. If it is recommended that an investment is sold then we will provide you with the appropriate paperwork and manage the sale process for you. All sale proceeds will be payable to the investor.

Q. If I redeem my existing insurance based savings or investments will lose my life cover - what can I do about this?

A. If you have a need for ongoing life cover this will be identified in our review process. The initial life cover may have been there to take advantage of tax breaks that are now reduced/removed and replacement cover may not be required. If you have a need for ongoing life cover then our consultants will provide you with a quote for this before existing policies are redeemed.

Q. What happens should I die?

A. The PERSPECTIVE service does not provide you with any life cover and on death these investments would form part of your estate.

Q. Is the investment process vulnerable to changes in key personnel?

A. Rossborough Financial has built an investment process that is well defined and robust enough to survive changes in any individuals involved in the investment management process, while the diversified and actively managed nature of the underlying investments is such that active switching is not a feature of our Strategies.

The monitoring process is also designed to identify any underperformance of funds against their peers and such situations are flagged and reviewed as a matter of course.

9. Tax matters

If you are redeeming a regular savings or investment policy that has life cover attached in order to reinvest into a PERSPECTIVE Strategy then you should note that no tax relief is associated with the PERSPECTIVE service.

Most of the funds used in the PERSPECTIVE service are onshore UK unit trusts and as such they will suffer UK withholding tax on their dividends which cannot be reclaimed by non-UK investors. This is the same tax treatment as for any individual UK shares held by non-UK investors.

In making our fund selections we analyse both the offshore and the onshore fund markets. In our experience, the expenses applicable to offshore funds can often exceed those of UK unit trusts, often negating any tax benefits, and there is much less fund choice available. So, often the apparent advantages of offshore funds are offset by other factors.

In the interests of transparency, all performance charts that we produce show performance net of all such tax and also net of all ongoing annual management charges levied by the fund groups.

The main focus of the PERSPECTIVE Strategies is capital growth, and with the exception of the Sterling Fixed Interest Strategy, accumulating units, from which no income arisies, will be purchased.

Rossborough are not tax advisers and any queries that you have regarding the tax treatment of your investment should be referred to a tax specialist.

10. Risk Factors

Potential investors should note that the capital value of investments and any income from them may fall as well as rise and an investor may not get back the amount originally invested. Past performance is not necessarily a guide to future performance. Movements in currency exchange may cause the value of underlying investments to fall in price.

Performance characteristics shown on the PERSPECTIVE factsheets are based on historical and theoretical analysis and are for indication purposes only. Where insufficient historic data exists for an underlying fund we have used the IMA (Investment Management Association) or equivalent offshore fund sector average, as appropriate.

11. The Next Step

If you would like to discuss PERSPECTIVE further with one of our consultants please contact us as follows:

Telephone: 01534 500612  or 01481 241534
Facsimile 01534 732262 or 01481 241535
Email PERSPECTIVE@rfsl.co.uk

Address:
Rossborough Financial Services Limited, PO Box 332, 41 La Motte Street, St Helier, Jersey JE4 9YA and PO Box 127, Rossborough House Bulwer Avenue, St Sampsons Guernsey, GY1 3HG

12. Regulatory information

Issued by Rossborough Financial which is regulated by the Jersey Financial Services Commission under the Financial Services (Jersey) Law 1998 in the carrying on of investment business.

This document is not intended to give individual advice. Investors should contact Rossborough for personalised advice as to whether PERSPECTIVE is suitable for them. 

GLOSSARY

Asset Allocation

The relative weightings of regions, sectors and types of investments (i.e. equities, bonds etc.) within a portfolio, determined by client's risk and return requirements and the market outlook.

Asset Class

Different categories of investments are sometimes described as asset classes. The major ones are equities, bonds and cash.

Bonds

Bonds are issued by governments or companies as a means of borrowing capital from investors. Investors are entitled to a fixed income up to the maturity date of the bond, and are guaranteed to be repaid their original capital at maturity. Bonds, in general, are therefore considered to be lower risk investments but it should be emphasised that level of risk is dependent on the quality of the borrower.

Diversification

This means spreading your investment risk across different sectors, regions or asset classes. If the value of just one particular area should fall, the overall impact on your portfolio is limited. Diversification is the principle of not having all one's eggs in the same basket.

Equities

These are shares in companies which represent part ownership by the investor. Equities offer potential for capital growth, but their value can fall as well as rise. Equities are higher risk investments which are best suited to those who are investing for the long term.

Fund of Funds

A fund which invested in other funds. Just as a fund invests in a number of different investments, a fund of funds invests in a number of different funds. Such funds have the advantage of greater diversification than a single fund.

Portfolio

Collection of investments held by an investor or fund.

Quantitative Analysis

Analysis that uses historical price data to evaluate funds. Research of funds that loos at both the long-term and short-term performance history of a fund relative to the sector in which is sits as well as relative to the most appropriate recognised market index or indices.

Quantitative analysis also extends to technical analysis which, for example, measures risk, maximum period of loss etc.

Qualitative Analysis

Analysis that uses subjective judgement in evaluating funds based on non-financial information such as management expertise, investment approach, size of team, appropriateness of the fund style for the current economic situation, strength of research, stability of workforce etc.

Risk

We believe there are two types of risk that every investor should be aware of. There is the risk that an investment can go down in value and this is generally measured in terms of volatility, or "standard deviation". However, investors should also be aware of the risk of not achieving their financial objectives. In order to address this latter risk investors may need to reassess their attitude to shorter term investment volatility.

Contact us

Rossborough Financial Services Limited

Email: enquiries@rfsl.co.uk

Jersey

Phone: 01534 500662
Fax: 01534 732262

PO Box 332, 41 La Motte Street
St Helier, Jersey JE4 9YA

Guernsey

Phone: 01481 241534
Fax: 01481 241535

PO Box 127, Rossborough House
Bulwer Avenue, St Sampsons 
Guernsey GY1 3HG

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