Excess risk is pointless risk.
We do not believe that it is sensible or worthwhile to take any more risk than is necessary to meet your personal financial goals. Whilst it is difficult to accurately measure an individual’s attitude to risk, interpreting the feedback on the subject of risk can be even more difficult.
At Blackstone we utilise a range of methods to assess the degree of risk each of our clients is comfortable with. First, we use tried and tested psychometric profiling methods to identify a client’s tolerance to risk. Then we interpret those results calling on all our investment experience and finally we refer to your own financial plan. This approach helps us to firmly establish and agree your desire for risk.
Many firms build portfolios based purely on risk tolerance, in our view that is a recipe for disaster.
If you don’t understand it don’t invest in it.
This is our ‘too hard, too good to be true, principle’. In other words, if we do not absolutely understand how an investment works and where its returns come from, then we’ll not invest a penny in it. And even if we do understand how it works, if we can’t explain it clearly to you over a 45-minute discussion then we’ll not recommend it to you.
We will not be bamboozled by jargon, nor will we be tempted by straight (up) line graphs or ‘flavour of the month’ products.
- Construct a financial plan first
- Eliminate bias
- Identify your financial goals
- View your finances as a whole
- We tell you what you need to hear, not what you want to hear
We will construct a financial plan that will detail what you can expect from your finances. Its simple aim is to ensure that regardless of what happens in your life or in the economic world that you can continue to enjoy the lifestyle that you have designed for yourself.
We need to make sure that your financial plan and investment portfolio is not only kept up to date, but is actually ahead of the curve of changing taxes, investment markets and product developments.
We will also ensure that we will anticipate the lifestyle events that will inevitably happen within your own lives, and also quickly adapt to the unexpected.
We will provide you with a Portfolio Report every year that details all of the losses and gains within your portfolio, so that they you can clearly see the after tax and charges returns you are achieving.
Bias has been rife in our industry for decades. It has lead to mis-selling scandals, it has lead to clients buying the most inappropriate product at completely the wrong time and it has lead to unacceptable losses in portfolios and the destruction of trust in our industry.
At Blackstone we have eliminated bias in its entirety. We have no bias between products, no bias between funds and no bias between asset classes. We are just as likely to recommend an ISA as a pension, cash on deposit as shares. We have no bias in the selection of company and wrap platform, our only bias is in delivering the returns you expect and in providing a first class service.
Our aim is for you to be financially independent and sufficiently knowledgeable to make informed investment decisions always mindful of your goals.
No matter whether your money is in a bank account, a pension or an ISA, it is still your money. If you need an income from your savings, any of these products can produce it for you. If you put some of the money you save at risk by investing your pension contributions in equities for example, then perhaps you should consider investing in a different asset class (property, cash, bonds etc) for your ISA. In other words, you need to view your investments holistically and make informed decisions based on the bigger picture, not in isolation.
We tell you what you need to hear, not what you want to hear.
If we feel your goals are unrealistic, we’ll tell you so – rather than allowing you to pursue a strategy that will never succeed. We would rather turn away business than knowingly allow a client to adopt a plan or make investments that we believe are inappropriate.