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Investment Risk

Investing in stocks and shares does involve risk, however, because of this the potential rewards can be greater. The more risk you are willing to take, the higher the potential return. 
You should make sure you know as much as possible about the risks before you undertake an investment decision. Furthermore, you should review those risks frequently to take account of your changing personal circumstances, and of any external changes that may affect your investments.

If you’d like to take advantage of the potential benefits of stock market investment, but do not have the knowledge and/or time to manage your own portfolio, you may wish to consider our Investment Management services. To ensure suitability, one of our investment managers will discuss with you the investment service(s) and if you wish to proceed, you will be provided with our Guide to Investing and we will require you to complete our Risk Profile Questionnaire. If it is deemed that your attitude to risk is outside the parameters for the investment service(s) being considered, we will discuss alternative services which may be appropriate for you.
 

Risk to capital

You should understand that the value of investments can go down and you could lose some or all of your capital, and that accepting lower risk does not mean there is no risk of capital loss. Cash also carries the risk that its value will decline due to inflation i.e. its spending power will be reduced.
 

income

Income from investments which may be in the form of dividends or interest are not guaranteed and yields will vary over time. Please note, with fixed income paying investments such as gilts and bonds, the payment of income and the return of capital could be in jeopardy in the event that the issuer has problems meeting its financial obligations.
 

Investment Decisions

The information on this website is not advice; we do not accept any liability for any loss arising as a result of reliance on the general information contained on this website.
 
If you use or opt for our Execution-Only Stockbroking service all decisions to buy, sell or hold investments are yours and yours alone. We act on your instructions and offer no advice as to whether such an investment is suitable for you. Any views or investment ideas that we provide do not constitute a recommendation to buy, sell or hold investments.
 
If you would prefer a service which provides you with investment advice, or you would prefer to entrust your investments to an expert, you may wish to consider our investment management services.
 
Our advisory services provide advice on all types of investment instruments that might be suitable for our clients, although we do not provide a universal financial planning service on non-investment instruments or products. Consequently, our advisory services are categorised as focused independent advice.
 

Smaller Companies

Companies which are not quoted on the FTSE 100 or the FTSE 250 are considered to be ‘smaller companies’. There is an extra risk of losing money when shares are bought in some smaller companies, as there is often a big difference between the buying and selling price of these shares. The price may change quickly and if they have to be sold immediately, you may get back much less than you paid for them.
 

Market Risk

Market risk, also called systematic risk, is where a particular factor will affect all investments in the group, for example, a piece of news that may impact on a particular sector or index. If your investments are spread more widely, i.e. diversified, such risk can be reduced.
 
For people with larger portfolios, risk can be spread across individual companies, including different sectors and even countries, but investors with smaller available funds can tackle the same problem using ‘collective investment vehicles,’ such as Unit Trusts, Investment Trusts and Exchange Traded Funds which track a variety of market sectors, indices and commodities.
 

Complex Instruments

Transactions in Complex Instruments (these include Contingent Convertible Bonds (“CoCos”), Derivatives, Futures, Options, Synthetic Exchange Traded Products (ETPs), Warrants and certain other Investments) may involve significant risks and be unsuitable for many investors. You should not deal in these unless you understand the nature of the contracts (and contractual relationships) you are entering into and the extent of your exposure to risk.
 
If you use our Execution-Only Stockbroking service we will need to be satisfied that the transaction in question is suitable ie. appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. We, therefore, require you to complete and submit a Complex Instruments:
Appropriateness Assessment Form before we are able to trade in Complex Instruments on your behalf.
 

Currency Risk

Exchange rate fluctuations may have an adverse effect on the value of investments. If you are trading in overseas shares, we may require you to forward cleared monies to us ahead of any purchase being undertaken. This is to alleviate currency risk and allows us to forward these to our overseas custodian in time for settlement. Conversely, when selling shares in an overseas market, it will not always be possible to settle with you on the intended settlement date until these monies are received.
 

Tax Benefits

If you save or invest money, you’ll generally have to pay tax on any interest or return you make, but there are some ways of investing, for example within an ISA or personal pension that give you a more efficient, or even tax-free, return. However, you must note that tax treatment depends on the specific circumstances of each individual and may be subject to change in the future.
 

Past Performance and Forecasts

Past performance and forecasts are not a reliable indicator of future results or performance.
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