So how do you decide which areas to invest in?

Peps Example

On an annual basis your Independent Financial Adviser from Merlin Financial Consultants will contact you to review your financial objectives and 'risk profile'. Based on this discussion, which will cover aspects such as the current economic situation and your country of domicile, your own personal portfolio will be established. An appropriate geographical split will be fixed for you, for the year ahead, and an initial spread of funds decided. If your circumstances alter during the course of a year, it may be prudent to arrange an interim review of your geographical split to reflect any resulting change in your attitude to risk.

Why can't I just stick with my original fund choice?

PEPable Funds Example

Well, you can. But there are so many changes going on in the market place-fund managers changing jobs; investment company take-overs and mergers etc., it is hardly surprising that fund performance alters significantly in a very short space of time. Hence past performance is not a guide to the future as the charts in this section show. It is essential that your initial spread of funds is monitored frequently to ensure that you take advantage of the best performers whilst avoiding those that may be going through a bad patch for whatever reason. However, it is important that this is done cost efficiently - not easy given that there thousands of funds available in the UK alone.

How is the 'fund information service' produced?

Peps Example

The 'fund information service' is divided into a number of sections, which distinguish between various investment types and geographical areas. We analyse all available funds.

Our analysis looks at two mathematical measures- the first is the fund's average relative performance (the performance of the fund compared to its sector average). The second measure is the volatility of the fund's average relative performance (how much a series of relative performance figures deviates about its average). These measures are taken every quarter for each of the previous thirty-six months. From this a ratio is calculated to establish the fund's ability to out perform its peer group on a consistent basis.

How does the 'fund information service' work?

Each fund sector is analysed as described above and each fund given a star rating on the following basis:

  • 5 stars for the top 10% of funds
  • 4 stars for the top 11-30% of funds
  • 3 stars for the top 31-50% of funds
  • 2 stars next 25% of funds
  • 1 star bottom 25% of funds

Some funds are designed to invest in specialist areas where the volatility of the fund is by the nature of the investment, high. These funds are not given a star rating. The service indicates how these funds have performed over the last twelve months against their peers by showing those that appear in the top 25% of actual performance, indicated as 1st Quartile.

How do you take action?

PEPable Funds Example

The 'fund information service' is merely a guide, and there is no obligation on the client's part to take any action as a result of its content. We have deliberately decided not to enclose specific information on any of the funds because we do not wish to inundate you with unnecessary paperwork. However, if you require further information or advice, to enable you to make informed decisions we are happy to provide it on request. Equally, if you decide that you do want to take action and switch one or more of your holdings, clients may complete a switching authority and send it to us for onward transmission.