Helping you through the investment maze

There’s a lot to consider when making an investment and it’s getting more complicated by the day. Is a long or short-term view best for you? What are the risks with each investment option? Even a bank account carries some risk and how are you going to measure the success of your investments anyway? You can’t consider them a success unless you stay ahead of inflation.

It can be difficult to determine the best investment vehicle for you, but we will recommend the most appropriate solution that provides the right balance between, access, tax efficiency and cost, whilst ensuring we have maximum choice to design a diversified portfolio blended to meet your unique needs and objectives. 

Most IFAs focus on “passive collectives” such as unit trusts. These are funds that don’t have a fund manager and are designed to stay in-step or track a specific index. Funds like these will be made up of constituents that are typical of the market it is tracking. Success of these funds is measured on it’s performance relative to that particular market.

Some investors believe that “passive investments” that don’t have a fund manager and are designed to stay in-step or track a specific market index are best. The rationale is that by not having to pay expensive management fees they can secure better overall returns by matching an index like the FTSE 100, less their costs. 

Active funds, set an investment fund manager a specific investment objective, such as, “to create long-term capital growth from investments within the UK”. The fund manager will try to use their skill to maximise returns within this objective for their investors. Clearly some are more successful than others and the additional cost of the active fund manager can detract from total returns. 

Some investors believe that investing directly in individual stocks and securities provides maximum return as there is no additional manager charge to pay. This may be countered by a lack of expertise to analyse and select the right stocks to purchase. 

At AFH, our core belief is that no single solution is the answer. Rather a blend of each solution, constantly changing to reflect the macro-economic condition, provides the right outcome to secure our members the best possible returns over time.

We can offer our community an unrestricted choice of investments because we have the experts on hand to research every option and judge their merits. Our investment experts, researchers and technicians cover all the options for you and come up with the investment strategy that best meets your needs.

The AFH Investment process is the cornerstone to our investment governance and provides the security and the “safe pair of hands” that our members are looking for. 

On an annual basis our in house professionals use market information to make assumptions about future global economic conditions. We use these assumptions to model the best mix of asset classes (stock and shares, fixed interest loan stock, property, cash and other assets) in aiming to deliver the optimum risk management and return for each of our five risk grades. This is called our strategic asset allocation which remains a constant through the coming year. 

Our Investment Committee meet at least monthly to review the macro economic climate with the aid of our in-house Chief Economist. The purpose of the meeting is to create a tactical asset allocation to the strategic model to deliver over and underweight positions to asset classes with the objective of enhancing total return whilst maintaining the benefit of risk management and diversification. 

This combination of stability and dynamic review provide the backdrop to our investment teams providing research at stock, fund, fund manager, sector and asset class to identify the best assets to populate our investor portfolios with a view to achieve ongoing success. 


Past performance is not a guide to future performance. Investments can go down as well as up.

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To discover how AFH's unique approach to wealth management can help you build a better future, please contact us.