Press Release

7IM ISA INSIGHTS: ASSET ALLOCATION AND CURRENCY RISK KEY ISSUES TO GET RIGHT

27 Mar 2017

Justin Urquhart Stewart, Co Founder and Head of Corporate Development

With just over a week to go before the end of tax year deadline, and the UK about to trigger Article 50, politics and investment could be seen to be going hand in hand: something that investors have perhaps become increasingly familiar with over the last 12 months of political shocks and uncertainty.  

 

So, what sort of questions should investors be asking? Justin Urquhart Stewart, Co Founder and Head of Corporate Development, 7IM, shares some of his thoughts, with the ‘active versus passive’ debate, asset allocation, and currency risk being three main themes.

 

Justin Urquhart Stewart, Co Founder and Head of Corporate Development, 7IM said: “We've always believed in keeping things simple: in an uncertain world, our raison d'etre remains to manage money, including our own, aiming for an expected return over the medium to long term. Many investors may be growing weary of the never ending 'passive versus active' debate (and for the record, we believe in both and use both types in our portfolios), which rages on now more than ever before. But it is a question investors need to ask themselves and is a good starting point when it comes to building a portfolio.

 

“Fundamentally we believe in active asset allocation. Then we build global portfolios based on that allocation using both active investments and passive ones, and include alternative assets where appropriate to manage the risk reward trade off. Many investors are still heavily focussed on UK companies, often with a good deal of duplication along the way, and the uncertainties currently facing the UK reinforces just how important a globally diversified portfolio can be.”

 

Currency risk

On currency risk, Justin Urquhart Stewart continued: “True global diversification also has to include the management of currency risk, and this is an area where investors should do their homework. Asset managers are often quiet about how they manage currency risk, but over the last several months UK investors are more acutely reminded of this risk than ever. We have always managed currency risk actively, and have recently reduced our exposure to Sterling by nearly 8%, adding to Japanese Yen and Emerging Markets.  At the time of the UK Referendum last year, we were overweight in US Dollars and underweight the Pound versus our strategic asset allocation positions.”

 

There’s always next year

Justin Urquhart Stewart added: “And for investors still bewildered about where to start with their ISA allowance, there’s nothing like starting the new tax year with some good intentions and breathing space. Regular investing gives investors time to spread out their ISA allowance on a monthly basis, smoothing out some of the highs and lows of markets along the way.”


Ends
 

 

For further information, please contact:

 

Jemma Jackson                                                     Justin Urquhart Stewart

PR Manager                                                             Co Founder & Head of Corporate Development

Seven Investment Management                          Seven Investment Management

jemma.jackson@7im.co.uk                                   justin@7im.co.uk

0203 823 8696                                                        020 3823 8700

07776 204 610

NOTES TO EDITORS

About Seven Investment Management: 7IM provides investment services to professional wealth managers, planners and advisers. These include:

  • Discretionary investment management with advice
  • A range of multi-asset portfolios
  • An investment and open architecture trading platform
  • A developed range of banking services
  • A fantastic app, 7IMagine, to bring the client portfolios to life.
  • 7IM – a story of Continuous Innovation

Since 7IM launched back in early 2002, it has pioneered a continuous stream of developments regarding how investment services are provided and charged for. We could just provide a list of our awards, but actually think it is more useful to tell you what we have done and what we have provided for clients and their planners - and there is still more to come.

  • January 2001 – First Sterling Online Wrap Account launched with ongoing Asset Allocation
  • January 2003 – First White Label live
  • January 2004 – 7IM OEIC live
  • July 2005 – 7IM Platform live
  • September 2005 – New 7IM Income Fund launched
  • February 2007 – 7IM Sustainable Balance Fund launched
  • December 2007 – 7IM gains its own FSA authorisation and new institutional investors
  • January 2008 – 7IM joins the London Stock Exchange
  • March 2008 – 7IM launches the AAP (Asset Allocated Passives) range of funds
  • October 2009 – 7IM introduces 3rd party multi manager funds into the DFM service
  • October 2009 – 7IM Personal Injury Fund launched
  • April 2011 – 7IM launches enhanced, ‘on-demand’ client reporting
  • January 2012 – 7IM Unconstrained Fund launched
  • June 2012 – 7IM launches Fixed Term Deposits
  • January 2013 – 7IM launches Asset Backed Lending
  • March 2013 – ‘7IMagine’ launched
  • June 2013 - Assets under Management pass £5bn
  • October 2013 – 7IM launches preferred SIPPs with DP Pensions Ltd and Carey Pensions UK
  • October 2014 – Assets Under Management pass £7bn
  • January 2015 – Assets Under Management pass £8bn
  • March 2015 – In partnership with AXA Wealth, 7IM announces preferred Offshore Bond offerin
  • June 2015 – Assets Under Management pass £10bn
  • February 2016 – 7IM launches My Future a new feature of the 7IMagine app which allows advisers and clients to enter the details of their existing savings and pension contributions, we well as spending expectations in retirement to identify when their cash will run out.
  • August 2016 – 7IM launches a Windows version of the 7IMagine App which allows 7IMagine to be used on all Windows devices including Microsoft Surface Pro, Windows phones and PC’s.

Seven Investment Management LLP is authorised and regulated by the Financial Conduct Authority. Member of the London Stock Exchange. Registered office: 55 Bishopsgate, London. EC2N 3AS. Registered in England and Wales No. OC378740. 

The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.

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