Hanson Wealth Management provide investment advice to both individuals and organisations. We are the appointed investment advisers to the Joint Central Committee of the Police Federation of England and Wales and we currently look after client portfolios with a total value in excess of £50 million.

We believe you have the right to know

If you have money invested it is vital for you to monitor its performance. You wouldn’t leave your cash unattended so why leave the performance of your investments unchecked?

One of the biggest problems facing investors is that the difference between an investment that performs well and one that performs badly can be enormous.

In good times, when stockmarkets are on the up and the values of your funds are growing, perhaps you don’t need to worry quite so much about your investment decisions. But if you do not keep a check on just who is managing your hard earned money and how well they are doing, you could be losing out.

Would you know how your funds are faring against other similar types of investment?

With the Hanson Investment Review Service you will receive a report with the facts about your funds you need. This will be updated for you every year so you can keep track.

All you need to do to sign up for the service is to complete a form with the names of each fund provider you have investments with a signature for each, and return it to a freepost address.

The service is available whether you are an existing client or not and is available free of charge. As part of the service you can phone us to ask questions about the report or arrange advice if you need it. But you are under no obligation to discuss or meet with us.

Most investments will have an annual mangement charge and part of this charge pays for the cost of reviews whether you receive this or not.

Obtain a no obligation review of your situation by completing this enquiry form. All contact will be via e-mail and telephone calls or a face-to-face meeting can be arranged if you prefer.
An initial review is offered on a no charge and no obligation basis.

New To Investments?

There are various types of investment – some will be right for you and others won't. It all depends on your attitude to risk and what you are trying to achieve with your investments.

ISAs

The Individual Savings Account, or ISA, is a tax-efficient savings scheme, designed to encourage people to save by offering tax benefits on any gains made.

The Government is committed to the ISA scheme and wishes to ensure that they become a permanent part of the savings environment. 

• A Cash ISA allows you to invest up to £3600 each tax year
• Each year you can purchase your Cash ISA from different providers if you wish but you can only have one Cash ISA per year
• Children over the age of 16 have an allowance but it can only be used to save in a Cash ISA up to £3600 per year
• Mini’ cash ISA’s, Tessa only ISA’s and the cash component of the old ‘Maxi’ ISA will all be reclassified as ‘Cash’ ISA’s from 6th April 2008
• The Cash component of an existing ISA can be transferred into a Stocks & Shares ISA (without counting towards the current year allowance) but not vice versa

• In addition to the Cash ISA, ISA savers can also choose to invest in a Stocks & Shares ISA.
• Alternatively they can choose to place all their £7200 annual allowance into a Stocks & Shares ISA.
• Where both ISA types are held, provided the annual allowance is not exceeded, the saver can choose how to split their allowance across the two types. For example if £2500 is saved in a Cash Isa the remaining allowance of £4700 can be invested in a Stocks & Shares ISA.
• ‘Mini’ Stocks & Shares ISAs and the Stocks & Shares component of the old ‘Maxi ISA will be reclassified as ‘Stock & Shares’ ISAs
• All Personal Equity Plans (PEPs) will automatically become Stocks & Shares ISAs on 6th April 2008 and become subject to the ISA rules - however individuals do not need to take any action for this to happen.

For all ISAs the following rules apply:

• Each adult individual has their own ISA allowance each year.
• If you do not utilise your annual allowance it cannot be carried forward to the next year
• It is the responsibility of the individual to ensure that ISA contributions do not exceed the annual allowance.

What are the tax benefits of investing in an ISA?

• You don’t pay tax on any interest you receive from your Cash ISA
• No tax paid on Capital gains arising from your investment in a Stocks & Shares ISA
• You do not have to tell the Inland Revenue and Customs about income and gains from ISA investments and savings
• Dividends earned by stocks and shares within the ISA will build up after deduction of tax at 10%.

Stakeholder ISAs

New regulations in April 2005 saw an end to the voluntary CAT standards for ISAs i.e. fair Charges, easy Access and decent Terms.  Instead, new Stakeholder ISAs for both cash and share-based investments have been introduced as part of the government's growing suite of stakeholder products. The changes won't affect consumers already with CAT standard ISAs – these accounts will continue to run on the same terms and conditions as when they were bought. Corporate Bond ISAs

Corporate Bonds are IOUs issued by a company that wants to raise money. The company fixes the annual rate of interest rate it will pay on the loan, and also a date when it will repay the loan. The interest rate, the credit worthiness of the company and the demand for bonds reflects the type of a return an investor can expect. However, not all companies are as credit worthy as others. This means that some companies may fail to repay the capital on the loan on maturity. The different levels of risk are reflected in the level of return offered. A safer bond, issued by a large and successful company will typically offer a lower interest rate, whilst a bond offered by a smaller, less secure company will often offer a much higher interest rate. Corporate Bonds are given a risk rating by credit rating agencies such as Standard & Poor’s, where the very best bonds are rated AAA and the riskiest are rated CCC.Investing in a Corporate Bond fund reduces the risk to the investor. Instead of an investor putting money into just one or two bonds, a Corporate Bond fund pools a large number of investor’s money together and uses a professional fund manager. They invest this money into a range of bonds. This has the advantages of spreading the risk and being able to buy different bonds paying a range of interest rates. This means an investor has the benefit of some protection if a single company defaults on its loan. This type of fund is available in a stocks & shares ISA.  Any income or growth achieved if held within an ISA will be tax-free.

Child Trust Funds

Children with Child Trust Funds will be able to roll their investment over into an ISA at maturity.So, should you buy an ISA and, if so, which one? This will depend on your individual circumstances.  However, we can help. We recommend you take your time to consider your circumstances and seek financial advice before making any investment commitments.

What are investments?

There are different types of investments but, basically, you take a risk with your money by investing in assets that could rise or fall in value. There is no guarantee you will make a return on your investment or even that you will get back the same amount you invested in the first place. Investments are different from savings - they are typically designed for the longer term and involve different types of risk.

Before investing it's usually a good idea to have sorted out your debts, made sure you've looked at protecting yourself against unforeseen events, built up some savings, and arranged your pension.

And, once you start investing, it's highly advisable to spread your risk - don't put all your eggs in one basket.

Things to think about before investing

• How much can you afford to invest?
• How long can you afford to be without the money you've invested?
• What do you want your investment to provide - capital growth (your original investment to increase), income or both?
• How much risk and what sort of risk are you prepared to take?
• Are you happy to go it alone, or do you want to share costs and risks with other investors?
• Do you want to be consulted on investment decisions, or are you happy for your fund manager or stockbroker to do this for you?
• If you decide to invest using pooled investments consider which type would be most suitable for you. The main differences between the pooled investments are the tax position and the risks (especially investment trusts and with-profit funds).
• What are the tax benefits implications - what tax will you pay and can you reduce the tax?

Risk

When deciding whether to invest, it's key to ask yourself how comfortable you would be facing a short-term loss in order to have the opportunity to make long-term gains? Risk is a very personal thing - what may be a small amount of risk to one person may be huge to another.

The important thing to remember is that with investments, even if your investment goes down, you will have only actually made a loss if you cash it in at that time. When you see your investment value fall, this is known as a paper loss as it is not a real loss until you sell.

If you are going to invest, you need to be prepared to take some risk and to see at least some fall in the value of your investment.

Advisers have to give you clear risk warnings about the products they sell or advise on and have to explain these risks to you fully. They also have to make sure the product is suitable for you

Living with risk

Risk can never be eliminated but it is possible to manage it, by diversification - spreading your risk. Different investments behave in different ways and are subject to different risks. Putting your money in a range of different investments helps reduce the loss, should one of them fall.

It is also important to remember that risk and reward generally go hand in hand. The more risk you are prepared to take, the higher the potential reward. If you are not prepared to lose any of your money under any circumstances then you have to accept a lower level of return. If you see an investment promising a high return at little or no risk, be very wary. The old saying 'if it looks too good to be true, it probably is' almost always applies to investments.

Currency risk

You should also be aware of currency risk. Currencies - eg sterling, euro, dollars, yen - move in relation to one another. If you are putting your money into investments in another country then their value will move up and down in line with currency changes as well as the normal share price movements.

Inflation risk

Although we usually talk about the risk of losing money, there are other risks to think about. One is inflation risk. Inflation means that you will need more money in the future to buy the same things as now. When investing, therefore, beating inflation is an important aim.

Higher risk shares

Higher risk shares could include shares listed on markets such as the Alternative Investment Market (AIM) or PLUS Market; penny shares; or shares that are not yet listed - such as Initial Public Offering (IPO) or pre-IPO shares.

Firms should make you aware of the increased risk these shares may carry - for example:

• There is sometimes a big difference between the amount you pay for the shares and the amount you are able to sell them on for.
• Some shares - particularly IPO and pre-IPO - can be difficult to find a buyer for. This could mean that you can't sell them on when you want to or that you have to sell them for a much lower price than you paid.
• There is an increased risk you could lose more or all the capital you invest.

However, you also share some of the responsibility. Share dealing can be a complex area so you should make sure you understand the risks involved and are happy the investment is suitable for you. Ask questions or find out more information if you're not sure about anything.

Types of investments

You may have heard of all sorts of investments - ISAs, shares, property, unit trusts - the list goes on. However, the best way to understand investments is to think about investing as having three 'layers':

• The underlying investment itself will fall into what are referred to as asset classes. There are four main asset classes - shares, bonds, property and cash deposits. You can invest in each of these directly if you wish.
• Pooled investments. This is when you put your money with other investors to invest in one or more of the above asset classes. This spreads your risk and saves on costs. Open-ended investment funds, investment trusts and life assurance bonds are the most common pooled investments.
• Tax wrappers. These are tax breaks that you can - subject to certain rules - wrap around your investment, either to shield it from some or all tax. The wrapper can be around either the underlying investment or the pooled investment. The two most common tax wrappers are ISAs and pensions.

Finally

• Make sure you understand what you are signing up to - especially the risks - and that it is right for you.
• Check out the impact of charges on your investment fund.
• Remember to check how your investments are performing regularly, say, once a year.
• Go for safer investments as you get closer to retirement if you are making your own investment decisions.
• Make the most of the tax breaks that are available.