2. Hunter Hammond Daniel Associates
is committed to deliver quality
independent advice aiming to provide
lifetime financial security.
3. About Us
We pride ourselves on establishing professional but personal relationships with our clients and focus
specifically on providing our services to private individuals. We’re based in Hove but serve clients
throughout the UK.
We specialise in the investment and pension market and all of our qualified advisers have extensive
experience in the financial services sector.
By blending this experience with technology we provide in depth research, product and fund analysis
and an efficient administration service, whilst also keeping abreast of all important industry changes
that could influence the advice we give.
4. Why a new
investment
proposition?
Until the introduction of our new investment proposition we
researched and recommended individual funds that were
reviewed to suit the needs of our clients.
The ‘old method’ had become unsustainable for many reasons
some of which are listed below.
I The proliferation of new fund launches, each one requiring
analysis before being recommended to our clients.
I The increasing use of a wider range of asset classes which are
now available under the UCITS* III directive, which, whilst
being of enormous benefit to investors, has added to the
complexity of asset allocation and rebalancing.
I The constant movement of fund managers from one
investment house to another, results in analysis being required
each time to evaluate the likely impact on the fund and
forwarding our misgivings to all our clients when appropriate.
I The increasing number of smaller boutique investment
management companies, some of which have been
poorly funded.
5. *UCITS, Undertakings for Collective Investment in Transferable
Securities, are mutual funds based in the European Union. The
UCITS III Directive, which took effect in 2011, has extended the
range of investments.
The purpose of this guide is to outline our core investment
proposition, which we believe can add significant value to an
individual’s investment portfolio.
To do this we involve expert organisations to carry out vital
aspects of research, portfolio construction and ongoing
management.
We believe this active monitoring, fund selection and automatic
rebalancing, carried out by some outstanding organisations will
deliver real benefits for our clients.
It ensures that your investment portfolios are managed in
accordance with your agreed investment strategies and your
tolerance for risk.
Hunter Hammond Daniel Associates aligns itself with leading
industry experts to deliver a robust investment process for our
clients’ current and future needs.
At the same time, we constantly increase our knowledge of
investment theory and practice by professional examinations
through bodies such as the Chartered Insurance Institute,
investment seminars, workshops and monitoring a very wide
range of investment publications and trade journals.
6. Step 1- Meeting Clients
This initial consultation allows us to get to know your current
financial position. We’ll discuss your future needs, your ambitions
and your values.
We gather all the relevant financial information together and set
out your personal and financial goals.
It also allows you to asses us. It’s important that you have
confidence and trust in us, as we want to work with you for
many years.
Step 2- Risk Assessment
We’ll ask you to complete a Risk Assessment Questionnaire as
part of our fact finding process.
This has been designed by Morningstar, a highly respected and
trusted provider of independent investment research.
The questionnaire helps determine the most appropriate asset
mix for a specific level of risk tolerance.
We then use the Morningstar Adviser Workstation software
system to identify and agree your overall risk tolerance. At that
stage you can request we use an alternative.
We then determine which of our risk-rated model portfolios is
the most appropriate for you.
We’ll also ask you whether any social, ethical or environmental
issues should be taken into account when looking
at your investments.
7. Step 3- Asset Allocation
Arguably, asset allocation is the most important step in the
process of long term investment planning. Asset allocation involves
dividing an investment portfolio among different asset categories,
such as equities, property, bonds, commodities and cash.
When it comes to investing, risk and reward are inextricably
entwined. All investments involve some degree of risk.
The asset allocation that works best for you at any given point in
your life will depend largely on your time horizon and your ability
to tolerate risk
The reward for taking on risk is the potential for a greater investment
return. If you have a financial goal with a long time horizon, you are
likely to make more money by carefully investing in asset categories
with greater risk, like equities or bonds, rather than restricting your
investments to assets with less risk, like cash equivalents.
On the other hand, investing solely in cash investments may be
appropriate for short-term financial goals.
The process of determining which mix of assets to hold in your
portfolio is a very personal one. The practice of spreading money
among different investments to reduce risk is known as
diversification. By picking the right combination of asset categories,
you should be able to limit your losses and reduce fluctuations in
investment returns without sacrificing too much potential gain.
There will be instances where it may be more appropriate to
arrange an investment direct with a product provider, or create a
‘bespoke’ portfolio. Ibbotson Associates will review the asset
allocation of each of our bespoke portfolios annually.
Ibbotson Associates
Ibbotson was founded in 1977 and their mission is to
deliver innovative asset allocation solutions, to help
investors reach their financial goals, and to stimulate
thought on the subject of asset allocation generally.
As an independent company, Ibbotson applies
cutting-edge academic research and methodology to
create real-world, unbiased, customised solutions to help
clients meet their specific goals.
8. Step 4- Portfolio construction
Based on an agreed core investment proposition and your own
attitude to risk, we identify the most suitable of our five risk-rated
model portfolios:
1. Income - designed for the very conservative investor, one with
a low risk tolerance and/or a short time horizon. It is targeted
toward the investor seeking investment stability and liquidity from
their investable assets.
2. Cautious - designed for the investor who seeks both
modest capital appreciation and income from their portfolio.
This investor will have either a moderate time horizon or a slightly
higher risk tolerance. While this is still designed to preserve the
investor's capital, fluctuations in the values of portfolios may
occur from year to year
3. Balanced - designed for the investor who seeks relatively
stable growth from their investable assets, offset by a low level of
income. This investor will have a higher tolerance for risk and / or
a longer time horizon than 1. or 2.
4. Active - designed for the investor with a relatively high
tolerance for risk and a longer time horizon, with little need for
current income and seeking above-average growth from
investable assets. The main objective is capital appreciation,
and this investor should be able to tolerate fluctuations in
portfolio values.
5. Aggressive - designed for the investors who have both a high
tolerance for risk and a long investment time horizon. The main
objective of the aggressive risk range is to provide high asset
growth without providing current income. Portfolios may have
substantial fluctuations in value from year to year, making this
category unsuitable for those who do not have an extended
investment horizon.
In all of the above portfolios the value of your investments
can fall as well as rise and you may get back less than your
original investment.
9. Outsourcing Fund Selection Decisions
For some of our portfolios we have engaged the services
of Old Broad Street Research (OBSR) the City-based fund
research consultants.
OBSR works for many of the best known firms in the
industry, offering research and services to fund managers,
product providers and large distribution firms as well as
individual advisers.
The backbone of their research process is qualitative
analysis based upon regular, face-to-face meetings with
fund managers.
Rather than solely relying on statistical analysis, OBSR believe
that a qualitative approach is the key to understanding
whether a fund is appropriately and well managed in relation
to its specific aims and objectives.
It is this focus of qualitative analysis which clearly
differentiates their approach from that used by other
fund research companies.
OBSR believe that it’s not sufficient to simply interview
individual fund managers. Instead they take a
holistic approach.
They interview all those who have an influence on a fund
manager and his or her remit. OBSR uses an investment
research approach that has been in place since 1994 and
with a strong emphasis on the qualitative aspects.
The key factors that underpin this are:
I strength of investment process and length of time it
has been in place
I continuity of investment personnel
I investment style that has proven durable over time
I clearly defined investment objectives
I strong and consistent past performance record
I favourable risk-adjusted returns.
10. Step 5- Wrap proposition
Sitting at the heart of what we offer is the use of a ‘Wrap’.
We believe a Wrap is fundamental to administering your
investments in the most efficient and cost effective way.
What is a wrap?
A Wrap account is a new concept in portfolio administration,
designed to assist the investor and their adviser with arranging
transactions, reporting and administering an investment portfolio
or pension arrangement.
There are many advantages for you as an investor when using
Wrap accounts, such as:
1. Ease - the ability to access your portfolio and
arrange transactions.
2. Reduced administration - consolidated income and capital
Gains Tax statements to help simplify the tax reporting. We spend
less time on processing and more time on your portfolio strategy
and financial planning, the areas you value more.
3. Control - we will be able to report, arrange transactions and
monitor your portfolio from one, centralised online platform.
4. Enhanced choice - providing the investment and / or security
are tradable it can be accessed through the Wrap. You have
access to a multitude of investment funds that might otherwise
be unavailable.
5. Access - you can access your portfolio online, or by telephone
to get an up-to-date valuation.
6. Cost and Economies of scale - favourable discounts on
initial and annual management charges on individual funds.
Charges associated with the buying and selling can also be
reduced due to bulk trading.
11. Step 6- Regular Reviews
We monitor progress against your goals, with pre-agreed review
timescales and provide further recommendations and
adjustments as necessary.
Over time your portfolio could drift away from the original
asset allocation. Without rebalancing this could result in a
portfolio that no longer meets your risk profile. Your risk profile
may also change.
Rebalancing has the benefit of capturing and then reinvesting the
gains made. It also seeks to ensure the risk within your portfolio
doesn’t become higher than originally intended.
Where you require a ‘bespoke’ portfolio it may not be
possible to arrange for automatic rebalancing. We’d be
pleased to discuss your requirements.
A Wrap account will not be suitable for every individual
and in such circumstances we will recommend a more
appropriate solution.
12. Client Proposition
We are committed to transparency so we want to ensure that each and every client we act for knows
exactly what they will receive from us.
We have therefore introduced three distinct client service packages,
Platinum, Comprehensive and Classic...
13. Platinum- Typically for portfolios in excess of £500,000
I Two face to face meetings per annum
I Half yearly valuations
I Half yearly portfolio performance analysis
I Annual Asset Allocation Review
I Annual Risk assessment Review
I Quarterly rebalancing of portfolio asset allocation
I Quarterly review of portfolio
I Ongoing updates of client relevant tax and legislation issues
I Quarterly Newsletter
I Comprehensive record keeping of all investments and policies
I Unlimited communication via telephone and emails
14. Comprehensive- Typically for portfolios in excess of £100,000
I Annual face to face meeting per annum
I Annual valuations
I Annual portfolio performance analysis
I Annual Asset Allocation Review
I Annual Risk assessment Review
I Quarterly rebalancing of portfolio asset allocation
I Ongoing updates of client relevant tax and legislation issues
I Quarterly Newsletter
I Comprehensive record keeping of all investments and policies
I Regular communication via telephone and emails
15. Classic- Typically for portfolios up to £100,000
I Annual Valuation by post or email
I Annual Newsletter (emailed)
I Annual rebalancing (Model Portfolios only)
I Central register of all client holdings
I Additional advice/administration requirements charged on fee basis
16. Hunter
Hammond
Daniel
Associates
Independent
Financial Advisers
For personal advice
If you would like to discuss whether the Hunter Hammond Daniel Associates Investment Proposition
would be suitable for you please ask your usual Independent Financial Adviser or contact us via one
of the following methods:
Hunter Hammond Daniel Associates Limited, 216 Church Road, Hove, East Sussex BN3 2DJ
T: 01273 735335 E: fs@hhda.co.uk F: 01273 735350 W: www.hhda.co.uk
Hunter Hammond Daniel Associates Limited is authorised and regulated by the Financial Services Authority.
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