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LWM Consultants Ltd - Investors in values July 2018

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LWM Consultants Ltd operates a financial planning practice in Bristol. The origins
of the business go back over 20 years, with the practice in its current form being
established in 2011.
Our focus is on clients who view the relationship with us as a partnership.
We believe that the strength of the adviser-client relationship is the most important
aspect and we look to build trust and a life time partnership. Our clients are
comfortable with the culture of the practice and have been with us for a number
of years.
If we were to identify a common thread between our clients it would be that all our
clients have or are building wealth and look to us to help deliver on their goals.
We aim to provide our clients with the peace of mind of knowing they are
supported by people who are working for their benefit.
This presentation outlines our service proposition.

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LWM Consultants Ltd - Investors in values July 2018

  1. 1. Investors in Values LWM Consultants Ltd. Financial Planners
  2. 2. “Be the difference that you wish to see in the world”
  3. 3. 1. Driven by passion 2. What is financial planning 3. Service proposition 4. Client segmentation / profile 5. Delivering solutions 6. Fee structure 7. The future 8. Helping others 9. Contact 10. Summary Agenda
  4. 4. Driven by passion
  5. 5.  At LWM we have built a team of highly experienced industry professionals with over eighty years combined experience  As financial planners we believe in the importance of continued professional development  These qualifications demonstrate our expertise and technical skills in Financial Planning to both clients and peers alike  Key adviser qualifications – Paul Berry, Diploma in Financial Planning and Nicola McKissick, Diploma in Financial Advice  Full list of all qualifications available via http://lwmconsultants.com/about- lwm/qualifications/ Driven by passion
  6. 6. “A key characteristic of the silent generation is that they don’t talk about money – not ever! Simply put, talking about money is taboo, impolite and a sign of bad breeding”  LWM Consultants is driven by a passion to break down these taboos and encourage people to engage with their money, in a way that is interesting and thought provoking  LWM Consultants believe that if you break down the silent generation then they can share financial education with the next generation, and create a snowball effect Driven by passion
  7. 7.  LWM has breadth and depth of experience across all aspects of financial services from financial planning (a very general term) to marketing and product design and investments  The business has adopted a straight forward model where the client is central to everything we do  We believe that understanding goals is key to understanding a client, and only then can you develop solutions Driven by passion
  8. 8.  We have simple a fee structure, simple solutions and portfolios* which have been tried and tested by our clients for many years  We use some of our profits to fund our charitable trust which can then be used to support causes we believe in and can help in making a difference (since establishing the business we have donated over £100,000 to charities / organisations in the UK and overseas)  Ultimately we believe that financial planning is vital to people’s well being; passion is the key, forget the noise - if the client is central to what you do then your passion is to do the best for them and that is why LWM Consultants exists *Although we aim to provide a positive outcome, past performance is no guide to future performance and investments can fall as well as rise Driven by passion
  9. 9. What is financial planning?
  10. 10. “You may have come across the term financial planning and wondered what does it mean, and does it apply to me?”
  11. 11. What is financial planning  Provides direction and meaning to your financial decisions  Considers the whole picture, so one decision impacts on another  Enables you to consider both short and long-term goals as part of your overall life goals  Enables you to adapt more easily to life changes  Makes you feel more secure that your goals are on track
  12. 12. Financial advice - myths  Financial advice is not about selling you a product  Financial advice is about working with you to develop a long-term financial game plan, i.e. financial planning  Financial advice does not have to be paid for in cash upfront  Financial advice can be paid for out of the investments used to deliver your long-term financial game plan
  13. 13. Financial advice – why?  You may need expertise you don’t possess in certain areas of your finances. For example, an adviser can evaluate the level of risk* you are comfortable with, and adjust your retirement plan to reflect this  You may feel you don’t have the time to spare to do your own financial planning  You have an immediate need or unexpected life event such as a birth, inheritance or major illness *Risk is the potential that a chosen action or activity (including the choice of inaction) will lead to a loss (an undesirable outcome)
  14. 14. Financial advice – why?  You feel a professional financial adviser could help you improve on how you are currently managing your finances  You know that you need to improve your current financial situation but don’t know where to start
  15. 15. What to expect from a financial adviser A financial adviser will work with you to develop a game plan that fits your financial circumstances and tailors it to accomplish your goals by:  Looking at the whole financial picture including your goals  Understanding your tolerance for risk* and what your expected returns are  Providing an unemotional assessment of what needs to be done  Delivering a comprehensive annual review  Keeping you informed *Risk tolerance is the degree of uncertainty that an investor can handle in regard to a negative change in the value of his or her portfolio
  16. 16. The process  Analysing and evaluating your financial goals  Understand what your goals are  Analyse your information to assess your current situation  Determine what you need to do to meet your goals  Develop and present financial planning recommendations and / or alternatives  Deliver financial planning recommendations that address your goals  Go over the recommendations with you to help you understand so that you can make an informed decision  Listen to your concerns and revise the recommendations as appropriate
  17. 17. The process  Implementation of financial planning recommendations  Agree how recommendations will be carried out  Adviser will carry out the recommendation  Monitoring your financial planning  The adviser will review your situation and adjust the recommendations, if needed, as your life changes
  18. 18. Expectations When working with a financial planner it is important to have realistic expectations.  Set measurable goals  Rather than saying you want to be comfortable in retirement, quantify what you mean, the adviser can help you more if your goals are quantifiable  Understand the effect of each financial decision  All financial decisions are interrelated, so a decision around a child’s education may effect when and how you meet your retirement goals  Review your financial situation periodically  Financial planning is a dynamic process  Goals may change over the years due to changes in your lifestyle (i.e. an inheritance)  Your financial adviser will meet you at least once a year to review your financial situation, but you can call them anytime if things change
  19. 19. Expectations  Be realistic in your expectations  An adviser cannot change your situation overnight but they will be able to take care of the lifelong process to deliver your goals  Realise you are in charge  You are in charge, make sure you understand what your adviser is doing for you and what they are offering  Make sure you provide the adviser with all the relevant information on your financial situation – no matter how small  Ask questions and play an active role in decision making
  20. 20. Service proposition
  21. 21. Our proposition is to ensure we are there for our clients throughout their financial journey – whether this is building and growing assets, or using assets to provide an income in retirement Initial advice With initial advice, we: 1. Firstly, look to understand the clients financial position, and then 2. Look to understand what they are looking to achieve (goals) over the short, medium and long term This is normally carried out in an initial meeting. Following the meeting, we will assess client needs and consider objectives (goals) alongside their attitude to risk and any other restrictions they have placed on what they are willing to consider. We then put together a recommendation for achieving the proposed goals and the implementation of that plan. We then carry out a follow up meeting to go through the recommendations. We’ll only start work once we have agreed our services and charges with the client. Service Proposition
  22. 22. On-going service The on-going service is part of the package we offer (i.e. both the initial and ongoing service come together). We do this to ensure we review needs on a regular basis, and can develop a long- term relationship to help achieve the goals. The on-going service is split as follows: Review: Clients are offered one review a year; in this meeting we will discuss any changes to financial circumstances, goals and attitude to risk. We are also available by phone and email although during non-working hours there may be a delay in our response. Service Proposition
  23. 23. Information: We issue regular blogs via email; these cover our thoughts on the markets as well as financial planning ideas. This information is also available on our website. Each quarter we issue a market and portfolio update. Valuations: Valuations are issued half-yearly, in January and July. These are held on a personal secure portal. Expertise: We have two qualified financial planners; being qualified requires us to have Continued Professional Development across all aspects of financial planning for personal and business related matters. This ensures we are up to date with the latest market and industry developments. Service Proposition
  24. 24. Rebalance: We do not outsource the management of the investments. We have developed our own proprietary system to review funds, and have developed seven investment portfolios. Throughout the year, we meet investment managers, and our notes from these meeting are available on the website. At the end of each quarter we update the website, and clients can view the performance of the portfolios, the holdings as well as key information documents. In May, each year we issue a report with a recommendation to rebalance the portfolio. This protects clients against investment drift (for example, the holding in the UK may have moved from 10% to 15%) and provides a consistent risk structure. We may also recommend a change in funds. Service Proposition
  25. 25. Client segmentation / profile
  26. 26.  We do not believe that more clients, or focusing on one group of clients (young accumulators or valuable clients), necessarily means having a better or successful business  We work with a small number of clients who value the service we provide, and who view the relationship as a partnership  We have tailored our service proposition to reflect this group of clients, and where necessary bespoke to adapt to individual needs  We believe that the strength of the adviser-client relationship is the most important aspect looking to build a high level of trust and a life time partnership  Our clients are fully embedded into the culture of the firm, and have been with us over a number of years  A common thread is that all our clients have or are building wealth and look to us to help deliver on their goals Client segmentation / profile
  27. 27. Delivering solutions
  28. 28.  Once we understand our clients needs, then we look to deliver solutions  The key to deliver the return is in our approach and commitment to investing  We offer seven risk rated portfolios which act as the foundation for many clients but we also bespoke investments depending on specific goals and needs Delivering solutions
  29. 29.  We are passionate about investing, and take a lot of our learning from the greats – Buffett, Lynch, Grantham et al  We believe investing is about long-term goals, and not about short term (often panic) thinking  Ultimately we attempt to be value investors*. If we like an investment then unless there is a fundamental change - why would you replace it? *Value investors look to invest in undervalued stocks of companies. The horizon for holding tends to be long term and contrary to the market at a given point in time. We do this by looking for fund managers that share similar thoughts. Delivering solutions – investment philosophy
  30. 30.  Our portfolios tend to be made up from investment trusts and funds  We use the platform* as a means of driving down costs  We don’t look for this years winner based on last years success, performance is part of the process but understanding elements like fund manager process, succession planning etc is as important if not more so  We tend to adhere to the analysis of the judge at the famous obscenity trial in the 1960’s who after days of argument about what was or was not obscene said “I don’t know how to define it but I know it when I see it” *A platform is sometimes called a wrap platform or fund supermarket. In reality it is purely an administration tool which is used to invest money and deliver goals. Delivering solutions – investment philosophy
  31. 31.  The main influence for the portfolio structure comes from David Svenson and his book “unconventional success”  We avoid making big bets on sectors or markets as we believe over time and with constant rebalancing (selling back risen investments to buy the fallen) this will systematically achieve the desired results  We gather analytical data to make decisions but we find greater understanding comes from meeting the fund manager. Only by meeting and listening can you really get a feel for the investment Delivering solutions – investment philosophy
  32. 32.  Once we have our pool of investments we then blend this into the portfolios, we cannot look into a crystal ball and predict the future outcome but we can, through back testing, get a feel for what they might produce so we blend funds so they match the portfolio objective  Joel Greenblatt when he published the “Little book that beats the market” was asked why he was exposing the strategy that had made him a fortune – he answered that the strategy required patience and persistence so few would actually follow it  Fundamentally our process is about searching out good managers, with good logic and reason, and good companies that have the support mechanism that ensures that the fund is not dominated by a “star manager” – our strategy requires patience and persistence and looks for long term returns Delivering solutions – investment philosophy
  33. 33. LWM Ethical Growth The portfolio looks to deliver above inflation returns (capital growth) through a combination of fixed interest and equity investments with an ethical mandate. The investments will be screened from the available UK Ethical Funds and Investment Trusts (currently approximately 80 available investments). The portfolio will look to avoid investments which are ‘sustainable’ but don’t have an ethical screening. Risk and benchmark performance of fund The portfolio holds a higher content of equities compared to the cautious and defensive portfolios, but less than the adventurous portfolios (we currently do not offer ethical versions of these portfolios). Currently the portfolio holds approximately 20% in assets such as fixed interest and absolute return funds, with the rest in equity funds which can include property. We believe this is the best way to provide potential upside growth as well as providing equal weight between risk and reward. For more information click here Delivering solutions – summary of portfolios
  34. 34. LWM Defensive Growth The portfolio looks to deliver above inflation returns (capital growth) through a combination of fixed interest, equity and property investments. Risk and benchmark performance of fund: The portfolio holds 55% in assets such as fixed interest and absolute return funds, with the rest in equity funds which can include property. We believe this is the best way to provide potential upside growth as well as protection against downside fluctuations. For more information click here Delivering solutions – summary of portfolios
  35. 35. LWM Cautious Risk 4 The portfolio looks to deliver above inflation returns (income and capital growth) whilst taking a level of risk consistent with a cautious risk attitude through a combination of fixed interest, equity and property investments. Risk and benchmark performance of fund: The portfolio holds 42% in assets such as fixed interest and absolute return funds, with the balance in equity funds which can include property. We believe this is the best way to provide potential upside growth as well as protection against downside fluctuations. For more information click here Delivering solutions – summary of portfolios
  36. 36. LWM Cautious Risk 5 The portfolio looks to deliver above inflation returns (capital growth) through a combination of fixed interest, equity and property investments. Risk and benchmark performance of fund: The portfolio holds approximately 40% in assets such as fixed interest and absolute return funds, with the rest in equity funds which can include property. We believe this is the best way to provide potential upside growth as well as protection against downside fluctuations. For more information click here Delivering solutions – summary of portfolios
  37. 37. LWM Balanced Growth The portfolio looks to deliver above inflation return (capital growth) through a combination of fixed interest, equity and property investments. Risk and benchmark performance of fund: The portfolio holds a higher content of equities compared to the cautious and defensive portfolios, but less than the adventurous portfolios. Currently the portfolio holds approximately 26% in assets such as fixed interest and absolute return funds, with the balance in equity funds which can include property. We believe this is the best way to provide potential upside growth as well as providing equal weight between risk and reward. For more information click here Delivering solutions – summary of portfolios
  38. 38. LWM Moderately Adventurous Growth The portfolio looks to deliver above inflation return (capital growth) through a combination of fixed interest, equity and property investments, but with a higher weighting to equities. Risk and benchmark performance of fund: The portfolio has a higher content of equity exposure compared to the defensive, cautious and balanced portfolios. Currently the portfolio holds approximately 14% in assets such as fixed interest and absolute return funds, with the balance in equity funds which can include property. We believe this is the best way to provide potential upside growth with a higher level of risk, however there is less protection against downside risk. For more information click here Delivering solutions – summary of portfolios
  39. 39. LWM Adventurous Growth The portfolio looks to deliver above inflation return (capital growth) through a combination of fixed interest, equity and property investments, but with a higher weighting to equities. Risk and benchmark performance of fund: The portfolio has a higher content of equity exposure compared to all the other portfolios we offer. Currently the portfolio holds approximately 6% in assets such as fixed interest and absolute return funds, with the balance in equity funds which can include property. We believe this is the best way to provide potential upside growth with a much higher level of risk, however there is less protection against downside risk. For more information click here Delivering solutions – summary of portfolios
  40. 40. Adviser charging - fee structure
  41. 41. Fee structure  We have adopted a transparent fee structure for a number years  The fee is a flat percentage of the funds invested which covers the service proposition outlined in this document  The adviser charging structure is:  Our clients have this fee taken from their investments each year Investments and / or pensions On-going service and maintenance A flat fixed percentage adviser charge of up to 1.00% p.a. New business A flat fixed percentage adviser charge of up to 1.00%
  42. 42. Fee structure Charges in action Client with £250,000 in investments invested in the LWM Balanced Portfolio: Percentage Fee Percentage Fee As Monetary Amount LWM Adviser Charge 1.00% £2,500 Investment Platform Charge 0.36% £900 Ongoing Fund Charge 0.57% £1,425 1.93% p.a. £4,825 p.a.
  43. 43. The future
  44. 44.  Many businesses don’t discuss the future  LWM believe this is a life time partnership, succession planning is a crucial part to this  None of the key members of LWM are looking to retire and perhaps we will work into our eighties or nineties but our clients need to know what our plans are  We have two certified financial planners*  These individuals are very much part of the day to day running of the business so clients get to know them, and if one of these members retired then clients would pass to the other individual  The aim is that like wealth will be passed down family generations so the business will be consistent whatever the changes in the make up of the team *A financial planner is a practising professional who prepares financial planning for people covering various aspects of personal finance The future
  45. 45. Helping others
  46. 46.  A proportion of the profits of the company will go to help others both in the UK and overseas  The LWM Charitable Trust’s main aims will be:  To fund well managed projects which help to relieve poverty,  To support disadvantaged children;  To make a positive difference to people’s lives.  The LWM Charitable Trust will look to go beyond supporting charities financially to helping practically to gain a greater understanding of needs and provide long term support  Since establishing the business we have donated over £100,000 to charities / organisations in the UK and overseas Helping others
  47. 47. Contact the team
  48. 48.  We aim to issue email updates to clients at least twice a month  Clients can follow us on twitter, slide share, Facebook and via our website:  @LWM_Consultants  www.slideshare.net/InvestorsinValues  www.facebook.com/InvestorsinValues  www.lwmconsultants.com  To contact the office call 0117 370 2490, fax 0117 973 2770 or email george.ladds@lwm-c.com Contact the team
  49. 49. Summary
  50. 50.  LWM are driven by a passion and desire to deliver a service proposition where the client is central to the business  We believe in long term, life time financial planning where we can help the client and their family  We are passionate about identifying goals first and then building the solutions to deliver the goals  We see investments as a central part of this proposition, and believe in long term investments and not being distracted by the noise around us  We believe that we can use what we have to help others Summary
  51. 51. You should note that past performance is not a reliable indicator of future returns and the value of your investments can fall as well as rise. PLEASE NOTE YOUR CAPITAL AND / OR RETURNS ARE NOT PROTECTED OR GUARANTEED LWM Consultants Ltd is authorised and regulated by the Financial Services Authority. FCA Number 728107. Registered in England and Wales under Company Number 07408315. Registered Office: The Garden Suite, 23 Westfield Park, Redland, Bristol, BS6 6LT

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