investment guide to bonds
TRANSCRIPT
INVESTMENT GUIDE TO BONDS
WWW.AVANTISWEALTH.COM
THE RICHER RETIREMENT SPECIALISTS
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Contents
SECTION 1 OVERVIEWIntroduction to bonds pg 03
How to invest pg 04
Reasons why pg 05
Types of bond pg 06
Credit rating explained pg 08
SECTION 2 LIFE STAGESYour life stages and investing in bonds pg 10
Starting out investing in your 20s and 30s pg 10
Mid-career investing in your 30s and 40s pg 11
Nearing retirement investing in your 50s and 60s pg 12
Retirement investing in your 60s pg 12
SECTION 3 INTRODUCING THE AVANTIS WEALTH BOND COLLECTIONAvantis Wealth & Bonds pg 14
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INTRODUCTION TO BONDS
Bonds are essentially an IOU issued by companies and governments to raise capital. Investors buy this debt and in return, the issuer promises to pay a set amount of interest every year, plus repay the capital at a set date in the future.
Bonds are also known as fixed income and fixed interest assets, and that’s because they pay out a fixed amount. There are two main types of bond – government bonds, also called gilts, and corporate bonds issued by companies.
Gilts have historically been considered safer than corporate bonds, as governments are less likely to go bust and default on their debt. They are issued either as short- or long-dated bonds; it’s possible to buy a gilt with a term of up to 50 years.
Corporate bonds are more risky, although generally considered less so than equities. Although it’s unlikely a company will default, if it does happen investors could lose some or all of their money. However, corporate bond holders are higher up the hierarchy for a payout than shareholders in that event.
Bonds are graded in terms of credit risk, so investors have a steer on how risky their investment is. Those rated AAA to BBB are known as investment-grade bonds, and are issued by the larger, blue-chip companies and governments. Those rated BB to C are called high-yield bonds, as they pay a higher amount of interest.
Like other traded securities, bond prices can go up and down. Investors should pay attention to the yield, which is the interest payable as a percentage of the bond price. The two have an inverse correlation, so if the price goes up, the yield goes down.
For example, if a corporate bond has a value of £100 and pays 5 per cent interest for five years, the yield is 5 per cent (£50/£100 x 100). But if the bond’s value falls to £90, the yield rises to around 5.6 per cent (£50/£90 x 100).
Importantly for the purposes of diversifying your investment portfolio, bonds typically have little correlation with the stock market, meaning that if equities slump, bond values aren’t necessarily adversely affected.
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HOW TO INVEST
There are many ways to invest in bonds. Investors can buy individual corporate bonds through a stockbroker, a trading platform, or in some instances they are available direct from the company itself. But buying individual bonds can be high risk, just like buying individual shares. If the value of the bond falls or the company defaults on an interest payment, then your whole investment will suffer.
Traditionally, buying individual bonds was typically beyond the reach of most private investors, but in 2011 the London Stock Exchange launched the Order Book for Retail Bonds, which is a platform where corporate and government bonds can be traded by private investors.
Since 2012, a number of companies have issued retail bonds with low minimum investment requirements, to target private investors (including ISA investors).
Bonds are traded through an LSE member broker, in the same way as shares. There are also other exchanges where bonds are traded.
The traditional method to diversify for first-time investors is to access bonds through a dedicated bond fund. Although choosing the right fund manager can in itself be challenging.
There are many different types of funds, holding different types of bond investment. Some funds focus on investment-grade bonds; others on high-yield bonds, where investors are rewarded for the higher risk of default with a higher rate of income. Finally, some funds invest in a combination of both.
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REASONS WHY
The reason why you may want to include bonds within your investment strategy is likely to change at different changes in your life. It’s a common misconception that bonds are only for very old, very rich, very conservative investors or very young (savings bonds for children).
In fact, bonds are an important component of a strategically-balanced portfolio at every stage of any investor’s life.
In general bonds offer:
SecurityGovernment bonds offer the investor unparalleled security. The risk of the UK or other major governments from developed countries being unable to repay their debts is low and government bonds should be considered superior in credit quality to a bank deposit. High grade multi-national government agencies (such as the World Bank) also offer an extremely safe home for the investor holding bonds to maturity.
Of course, not all bonds are issued by governments. Many bonds are issued by companies and other organisations whose ability to service the debt may be less certain. However, even corporate debt can be considered a safer investment than the company’s equity. In the event of bankruptcy, bondholders are ranked above shareholders in their claim on the company’s assets.
In general, Avantis Wealth favour asset backed securities including corporate bonds and loan notes, where you, along with other investors may collectively have a legal charge over the underlying asset – usually land or property, providing a high level of investor security.
Return of capitalBonds also differ from equities in one other very important aspect. In order to realise your profit (or loss) on an equity you are wholly dependent on the ability to sell the instrument back to the market. When an investor buys a bond, the redemption date is fixed in advance, reducing the investor’s reliance on the uncertainties of future market sentiment or liquidity.
IncomeWith an ageing population in most developed countries, income becomes an increasingly valuable aspect for any portfolio. Income available from bonds is generally higher than that available from equities. Also, future income payments are a known quantity, unlike dividends from equities, which may be reduced or withheld entirely in times of low profitability.
This makes bonds ideal for investors who wish to secure future income over a defined period of time. With bonds paying annually, semi-annually or sometimes quarterly, a carefully chosen bond portfolio can produce a reliable monthly income. Remember also that most bonds pay their coupons gross, without withholding tax. Investors can take advantage of this by holding qualifying bonds within an ISA, producing a tax free income.
DiversificationA well-managed portfolio should contain a variety of different assets classes. Equities, government bonds, index-linked bonds, corporate bonds, property and alternative assets all have their role to play. This simple approach, also known as “not keeping all your eggs in one basket” is one of the most effective strategies for reducing risk in a portfolio.
In certain economic scenarios, such as a recession, bonds will generally show an inverse correlation in price movements to equities. Note that in the 2000-2003 period, when the FTSE100 Index declined by nearly half from the millennium highs, longer dated gilts saw prices rise over the same period.
Benefit from falling interest ratesWhen an investor buys a fixed coupon bond, he or she locks in interest rates for a defined period. Because of this, falling interest rates will cause the market value of the bond to rise. Investors who buy bonds in falling interest rate scenarios will receive the double benefit of a secure income and capital appreciation of their asset.
SpeculationAny financial instrument offers the potential to speculate on future price movements, and bonds are no exception. Liquid government bonds are often used by traders speculating on future interest rates while corporate bonds can see sharp price movements from changes in the perceived credit quality of the issuer.
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TYPES OF BOND
Bonds are securities representing the debt of a government, company or other organisation. Effectively they are loan stock, or “IOUs” issued by these organisations and bought by investors such as banks, insurance companies and fund managers. Investors are often heard to say “I don’t understand bonds”, but the truth is that these instruments are much simpler than equities. The key components can be broken down as follows:
• The issuer: This is the entity which is borrowing the money. For instance, £100 million will be borrowed, and £100 million of securities will be issued. Typically these will be sold at “par” or 100p in the pound.
• The coupon: The issuer commits to pay a rate of interest of “X” % per year. This coupon will generally be a fixed amount and is usually paid quarterly, six monthly or annually.
• The maturity: A date is set for the repayment of the money. This is known as the redemption date. The bonds will be redeemed at “par” or 100p in the pound with some rare exceptions.
At launch, bonds are sold to investors via an investment bank or broker. This is known as the primary market. Gilt issues are also offered directly to the general public. After this primary phase, bonds are then free to trade between investors and/or market counterparties. However, unlike equities that trade through a centralised stock exchange, bonds generally trade on a peer-to-peer basis from one institution such as an investment bank to another such as broker.
Gilts or UK Government bondsThese are bonds issued by the UK government in order to finance public spending. UK Gilts are rated AAA by all the major credit ratings agencies and can be viewed as effectively risk-free from the point of view of default. The price of these instruments will fluctate from day-to-day in the market, depending on the outlook for interest rates but investors who buy at par or below, and hold the bonds to maturity can be certain that interest and principal will be repaid in full.
Conventional GiltsThe majority of Gilts are of a conventional nature, paying a fixed coupon (generally twice a year) and maturing at a set date. The life of these instruments will vary from a few months out to as much as fifty years.
The most popular Gilts for private investors are maturities between two and ten years. Some gilts have more complex features such as “calls”, which enable the government to retire the debt ahead of time. Before purchasing a Gilt, it is worth checking the full details of the issue.
Index-linked GiltsThese instruments were first issued in 1981. Rather than pay a fixed coupon and amount on redemption Index-linked gilts differ from conventional gilts in that the semi-annual coupon payments and the principal are indexed to the UK Retail Prices Index (RPI).
It is worth noting that there is a time lag on the RPI used to calculate the coupon and redemption period, however these instruments do offer a hedge against inflation. Because of the inflation-linking aspect of these bonds, Index Linked Gilts may show wider movement of price over time.
Undated or perpetual GiltsThese instruments differ from conventional Gilts as they have no set maturity date. They may or may not, be paid back at a time of the government’s choosing. Because of this the holder is reliant on the market price to liquidate his investment, and as such they should be viewed as more risky than conventional Gilts.
The most well-known amongst this group was the UK 3.5% War Loan. George Osborne decided that the time was right for the treasury to settle the £1.939 billion outstanding issue at par in March 2015. The bonds were originally issued to fund the war effort during WW1.
PIBS: or Permanent Interest Bearing SharesThese are a type of instrument issued by UK building societies. Technically they are not bonds, but a type of risk capital, being subordinated to deposits and other senior obligations of the society. The events of 2009 demonstrated that this subordination is a real risk for investors and holders of PIBS in many building societies and ex-building societies have been adversely effected.
Due to their fixed coupons, PIBS behave in a manner similar to bonds and offer investors a long-term income stream and these securities remain popular with private investors. Individual issues vary greatly in coupon, price, yield and other features such as calls.
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Other types of bonds
Corporate bondsThese are bonds issued by corporations, typically large quoted companies. However, an increasing number of expanding small companies are issuing bonds to finance projects and business expansion as an alternative to raising loans from a bank.
The life of a company is full of ups and downs and it is fair to say that in most cases corporate bonds carry a greater risk than those issued by major governments or banks. Factors affecting a company’s credit rating include cash flow, profitability, asset valuations and unforeseen events such as legal action, a takeover or a change of the trading environment. The yield on these bonds will normally be greater than that available on bank debt.
At Avantis Wealth we focus on a select range of corporate bonds and loan note securities, including several that can be held within an ISA. We target fixed rates of return in the range of 7% to 15%. Visit www.avantiswealth.com/investments for our current range of fact sheets. To download them you will first need to register for our complimentary Gold membership.
Floating rate notesThese are bonds where the coupon is not fixed, but based on a reference rate, typically LIBOR. They do not exhibit the same degree of interest rate sensitivity as conventional bonds. The majority of FRNs will be issued with maturities between two and ten years and will be senior debt.
Convertible bondsThese are bonds where the holder may convert his redemption proceeds into the equity of the issuing company. These are known as “equity convertibles” and can offer a combination of yield and growth for investors. These instruments may see their price driven higher by a rise in the company’s equity. Risk, however, is generally higher. In some cases, bonds may be issued with the option to convert into other bonds. These are a rather different kettle of fish and should not be confused with the “equity convertibles” above.
Subordinated bondsThe majority of bonds issued are “senior debt”, meaning that the holder has a priority claim on the company’s assets, ahead of that of the shareholders. Some bonds are issued with “subordinated” status. This means that the buyer of the bonds accepts a lower claim on the company’s assets, below the senior debt holders, but above the equity holders. Because of the additional risk, a higher yield will be offered. These bonds are also more volatile and show greater sensitivity to shifts in the perceived credit quality of the issuer.
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CREDIT RATING EXPLAINED
Credit quality is a measure of the issuer’s ability to service and repay its debt. In the case of gilts, US Treasury bonds and other high-quality government debt, this can be viewed as a certainty. However, for other issuers, the wise investor must do some homework.
You may have your own knowledge and views on a company’s ability to repay debt or, alternatively, you can view the credit rating assigned to issuers by several of the credit rating agencies, who deploy considerable resources to assess both the issuer and the individual bond.
It is in the interest of bond issuers to obtain these ratings. Without this stamp of approval from an independent body, the bonds will be hard to sell. Indeed, most institutional investors will be unable to purchase a bond that does not have a rating.
There are two main international credit ratings agencies, namely Moody’s and Standard & Poors. Credit ratings are the criteria used by most banks and fund managers when establishing the suitability of a bond as an investment but, remember, situations change quickly, and so can credit ratings.
Here is Standard & Poor’s definition of the ratings it awards to organisations issuing bonds:
AAAExtremely strong capacity to meet its financial commitments. AAA is the highest issuer credit rating by Standard & Poor’s.
AAVery strong capacity to meet its financial commitments. It differs from the highest rated obligors only in small degrees.
AStrong capacity to meet its financial commitments, but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligors in higher-rated categories.
BBBAdequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments.
Above BBBThe above credit ratings are known as ‘investment-grade debt’. As a rule of thumb, investor’s managing portfolios where the risk must be minimised, and security of income and capital is paramount, will restrict themselves to bonds rated AAA and AA, with perhaps a few single A investments. Consider also a bond’s credit history. Has the rating improved or declined over time? Bonds subject to a potential re-rating will be on ‘credit watch’.
Below BBBBonds rated below BBB are known as ‘non-investment grade’. These bonds are of a more speculative nature, and imply a certain degree of risk. In view of this, the incremental yield available on the instrument must be adequate to compensate the investor for this risk. Standard & Poor’s gives the following definitions for non-investment grade debt.
BBLess vulnerable in the near term than other lower-rated obligors. However, it faces major ongoing uncertainties and exposure to adverse business, financial, or economic conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments.
BMore vulnerable than the obligors rated BB, but the obligor currently has the capacity to meet its financial commitments. Adverse business, financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitments.
CCCCurrently vulnerable, and is dependent upon favourable business, financial, and economic conditions to meet its financial commitments.
CCCurrently highly vulnerable.
CMay be used to cover a situation where a bankruptcy petition has been filed or similar action taken, but payments on this obligation are being continued. C ratings will also be assigned to a preferred stock issue in arrears on dividends or sinking fund payments, but that is currently paying.
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YOUR LIFE STAGES AND INVESTING IN BONDS
• Starting out investing in your 20s and 30s
• Mid-career investing in your 30s and 40s
• Nearing retirement investing in your 50s and 60s
• Retirement investing in your 60s
Starting out investing in your 20s and 30s• Investment goal - Maximise capital• Investment horizon - Very long (30 to 45+ years)• Risk tolerance - High
At the start of your career you may have a hard time imagining life 20, 30 or even 40 years from now. Chances are that you are more concerned about paying bills and saving money for big-ticket items such as a car, a wedding, a house or starting a family.
Your ability to reach your goals and achieve financial security, however, depends in part on maximising your current income through investments. You have the opportunity to create the important habits of saving and strategically investing now so you can enjoy its benefits in your later years.
The work that you’re doing now is laying a foundation for future financial freedom. For example, having money withdrawn from your salary and automatically deposited into an employer-sponsored pension plan can provide you with a solid nest egg when you leave the workforce.
Since you have a longer horizon for investing (the amount of time between now and when you want/need to access your money), you are in a better position to consider investing in higher-yield, higher-risk instruments. There are higher-risk bonds that carry high coupons (interest rates). You may be interested in assuming that risk to potentially make significant interest on your investment.
Bear in mind, however, that even at this early stage of the investment game, you want to aim for a well-blended portfolio to balance risk and market volatility. While your higher-yield investments can appear more exciting because of their potential to earn more interest, it’s important to even out your portfolio with some strategically chosen lower and medium-risk investments as well, including bonds.
Depending on your circumstances bonds can help you:
Grow capital through high-yield returnsThere are high-risk / high-yield bonds that may be of interest to you as you look to grow financially. Remember that when you invest in higher-risk instruments you face a greater potential for loss due to interest rate risk and credit risk. Carefully research each bond offering and know a bond issue’s terms and conditions including its’ rating, call features and whether or not it is insured prior to investing. An independent financial adviser may be able to help you.
Preserve your savings for a big future purchaseIf you are saving money for a large future purchase; a car, a wedding, a house then you might consider investing your savings in a low-risk bond with a maturity date that matches the date you will need the money. For example, new UK Government bonds, more commonly known as Gilts. You can also buy corporate bonds with maturities timed to your needs in the secondary market through a bank or a stockbroker. Prices and yields will vary.
Diversify your employer-sponsored pension plan
If your employer-sponsored pension plan offers a variety of collective investment funds, you might want to allocate some portion of your assets to bond funds to diversify your holdings and spread your risk. Because the stock and bond markets do not often move in the same direction, bond investments can stabilise and even enhance your overall returns. You might look into high-yield and long-term bond funds if you want to take more risk for the possibility of higher returns.
Supplement your incomeMaybe you’ve received an inheritance or other large sum of money. Investing it in bonds can help you preserve the capital for the future while generating interest income that you can spend now. Depending on how much you have to invest, you might want to consider constructing a bond portfolio yourself with the help of an independent financial adviser, or investing in another type of bond investment such as a unit trust bond fund.
Develop discipline with pound-cost averagingOne of the common myths about investing is that you have to have a lot of money to do it. That’s a good reason to consider pound-cost averaging. If you can only invest a small amount at a time, or if you are uncomfortable investing large chunks of money at once, pound-cost averaging can be a way to invest in bonds automatically on a regular schedule.
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First, consider working with an independent financial adviser to determine what types of bond investments are appropriate for your portfolio. Next, select a regularly scheduled date to have a pre-determined amount of money automatically withdrawn from an account of your choice and have it deposited into your trading account to purchase the bonds you have chosen.
Making small deposits over time will add up to consistent investments which can reap significant dividends over the long term. Think you don’t have enough money to invest? Consider the pound-cost averaging approach to purchase bonds for your portfolio.
Mid-career investing in your 30s and 40s• Investment goal - Capital growth• Investment horizon - Long (20 to 35+ years)• Risk tolerance - Moderate
The middle years from mid-30s to late 40s are crucial to accumulating and wisely investing towards your retirement and long-term financial goals. Even if you didn’t, or couldn’t, start saving and investing earlier you need to begin making up for lost time now.
If you’re between 35 and 45, you are probably earning enough to live more comfortably now than when you were younger, but are increasingly concerned about funding your retirement and paying for your children’s education. While you still have time in your investment horizon to be able to recover from a market slump, you don’t want to have your portfolio so heavily loaded in high-risk investments that you could lose the bulk of your money if the stock market or your individual stocks and shares decline significantly.
Because your investment horizon is somewhat shorter than when you were first starting out in your early twenties, you should rebalance your portfolio to make sure that you have allocated your assets appropriately. Independent financial advisers usually recommend that at this point in your investment life it would be prudent to shift your investments to focus more on medium-risk and low-risk instruments, while still maintaining a healthy, but smaller, percentage of investments in higher-risk instruments.
Remember that the key is spreading, or allocating, your assets across investments of varying degrees of risk to blend the risk you’re taking and to maximise your interest-earning potential. Consult an independent financial adviser for investment recommendations and assistance.
Bonds should represent a larger portion of your asset allocation than they did when you were younger. Bonds provide a stable backbone and more predictable income generation than equities. The following are some bond strategies to consider at this
stage in your investment life. As always, it’s a good idea to consult an independent financial adviser before making any investment decisions.
Zero Coupon bonds for specific goalsZero coupon bonds are sold at a deep discount from their face value. When the bond matures, the face value reflects both the principal and the interest accumulated. Buying a zero coupon now with a maturity that coincides with the year your child starts university or the year you would like to retire can be a cost-effective way to increase the likelihood that you will have the money you need when you need it.
Increasing your allocation to bondsIf you have not yet started investing a portion of your assets in bonds, now may be a good time to start. If you are willing to take a little more risk for the possibility of higher returns, consider high-yield or longer-term bonds or corporate bond funds.
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Nearing retirement investing in your 50s and 60s• Investment goal - Conserve capital• Investment horizon - Moderate (5 to 15 years)• Risk Tolerance - Low
Hopefully by this point the hard work and discipline of saving and investing is creating a solid portfolio that enables you to look forward to financial freedom in your retirement.
As retirement approaches, your investment horizon shrinks. In other words, the closer you are to retirement, the less chance you want to take that you could lose a sizable portion of your investments. You want to more aggressively protect your assets from the stock market’s volatility.
Many independent financial advisers suggest that people at this point begin increasing the bond portion of their portfolio to 50% or more to lower their overall investment risk. Some issues to consider when evaluating bonds for your portfolio:
Bonds or Bond Funds?The bond markets offer investors many choices and sectors, each with a slightly different risk and return profile. As with all investments, diversification is important in your bond investments too. Because many kinds of bonds can only be bought in minimum increments of £1,000, creating a bond portfolio that includes different issuers, market sectors, maturities and credit qualities can require a significant amount of assets.
Bond funds, unit trusts or exchange-traded funds may be a better choice for more convenient and affordable diversification, although they don’t offer the comfort of a single bond’s promise that your principal will be returned on the maturity date.
Managing interest rate riskThe general rule is that when interest rates rise, bond prices fall and vice versa. If you buy a bond with a 5% coupon and interest rates on the same maturity rise to 6%, not only will your bond be worth less if you want to sell it before maturity, but you will also be missing the opportunity to earn higher interest. One way to manage this risk is with laddering.
Creating a portfolio of bonds with maturities staggered over one, three, five and ten years, for example, helps you do well in any interest rate environment. When rates are rising, you will have short-term bonds maturing that allow you to reinvest the principal at higher rates. When rates are falling, you will still have the longer-term bonds paying higher coupons.
Retirement investing in your 60s• Investment goal - Preserve capital• Investment horizon - Short (immediate access to
funds)• Risk tolerance - Very low
During retirement your main investment focus is ensuring your financial security. Most financial advisers say you’ll need about 70 per cent of your pre-retirement earnings to comfortably maintain your pre-retirement standard of living. If you have average earnings, your State Pension will replace less than half. Your investments and your employer’s pension plan, if you have one, will have to make up the rest. Bonds can generate an important source of retirement income while preserving your principal.
When thinking about bonds, think about:
Maximising your lifetime incomeThe right kind of bond investments for you will depend on your life expectancy, your tax bracket, and the amount of risk you can afford to take. High yield and longer-term bonds may have higher coupons, but they also can put your principal at risk if you need to sell the bond before it matures and the issuer’s credit quality has declined or interest rates have risen.
Guarding against inflationRetirees living on a fixed income can lose purchasing power if inflation increases. To help guard against this risk, you might consider including Index-Linked Gilts in your investment portfolio. As a result, the amount of your income that should stay represents equivalent purchasing power. At maturity, you get the higher of the original face value or the inflation-adjusted amount. Another way to guard against inflation is to keep a small percentage of your portfolio invested in shares for their greater growth potential.
Leaving a legacyIf you want to preserve your assets so they can be passed on to your children or to your favourite charity according to your wishes, you may want to establish an estate plan using investments held in trusts. Bonds often play a vital role in the investment strategy for an estate plan, but you should always to consult your solicitor and accountant so you understand all the legal and tax implications.
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INTRODUCING THE AVANTIS WEALTH BOND COLLECTION
Avantis Wealth has since its inception offered a range of property backed investments, many of which are structured like a bond, in the form of a debt instrument known as a Loan Note (see glossary). These low-risk investments typically offer fixed returns in the range of 7 per cent to 15 per cent per annum, offering significantly higher returns than many traditional unit trust bond funds.
In July 2015, we launched a select portfolio of bonds in response to our clients’ need for higher income from savings held within Individual Savings Accounts (ISA’s).
Avantis Wealth Listed Bond Collection
Current fact sheets can be downloaded on our website. All bonds subject to availability.
*Listed on the Bermuda stock exchange.
Helix ‘B’ 9.85% Bond* Sector: Consumer Finance
Carduus 6.5% Bond Sector: Social Housing
Blueprint 7.5% Bond Sector: Engineering
Swestate 8.0% Bond Sector: Property Development
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Next Steps
Thank you for reading this Special Report. We hope you have found it interesting and valuable.
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Contact details
Want to invest for income now?Do you have poorly performing investments and need to generate the best possible income right now? Then consider investments within our portfolio which offer:
• Up to 15% annual income
• Payable quarterly, six monthly or annually
• Investment starts at £2,500
Want to build your fund for the future, achieving maximum growth?Whether you wish to invest directly or through a pension scheme, our investment portfolio offers a wide choice of investment type, location and timescale:
• Investments typically from 1 to 5 years
• Returning up to 15% annually, or 60% over 5 years
• Investment starts at £2,500
Do you have a frozen or underperforming pension?Then request a complimentary pension review. This will show you:
• Value of your fund
• Performance over the last 5-8 years
• Fees and charges you are incurring
• Expected income in retirement
Armed with this information you can explore options to do better.
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If you have understood and find resonance with the concepts and ideas shared in this Special Report, it’s time to take action. This is what Avantis Wealth, can offer you:
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DISCLAIMER
Avantis Wealth Ltd is not authorised or regulated by the Financial Conduct Authority (FCA). This is not a financial promotion or an invitation to invest.
Avantis Wealth Ltd does not provide any financial or investment advice. We provide a referral to a regulated advisor who will offer appropriate advice, or to the company offering an investment who will determine your suitability for the investment prior to any offer being made. We strongly recommend that you seek appropriate professional advice before entering into any contract. The value of any investments can go down as well as up and you might not get back what you put in. You may have difficulty selling any investment at a reasonable price and in some circumstances it might be difficult to sell at any price.
Do not invest unless you have carefully thought about whether you can afford it and whether it is right for you and if necessary consult with a professional adviser in accordance with the Financial Services and Markets Act 2000. These products are not regulated by the FCA or covered by the Financial Services Compensation Scheme and you will not have access to the financial ombudsman service.
This document does not constitute an offer to invest but is for information only. Persons expressing an interest in the bond will receive an invitation document, which they should read and ensure they fully understand prior to making any decision to subscribe. Persons in any doubt regarding the risks associated with investments of this nature should consult a suitable qualified and authorised advisor.
THE RICHER RETIREMENT SPECIALISTS