January 2007

Welcome to the January issue of our newsletter keeping you up to date with investment matters. We hope you find it interesting.
You can contact us at advice@argylefinancialgroup.co.uk

We are often asked about how successful Argyle have been when it comes to the business of managing client assets within a wrap account… a perfectly valid question when one considers that it is our objective to add value, in real terms, via a considered process of asset allocation and fund selection.

Obviously, the performance of individual portfolios will vary depending upon a client’s particular requirements, not least their attitude towards risk. However, we have undertaken an analysis of the returns enjoyed by Argyle clients during 2006 and established that we achieved an average growth of 16.3%.

This compares favourably with the 10.7% growth achieved during the same period by the Footsie 100, a table of the top hundred companies listed on the London Stock Exchange.

Average Growth Comparison Graph

What may not be obvious at first glance is that the average growth of 16.3% within an Argyle wrap account has been achieved across a balanced range of funds, which represent a lesser degree of risk than that associated with investing in all those companies who comprise the Footsie 100 …or indeed, any other mix of equity-only investments.

Our guiding principle is to achieve the best level of return, for the least level of risk. This means that the typical portfolio will comprise approximately 50% invested in equities and the remaining 50% invested in lesser volatile assets that include property, corporate bonds, government gilts and other fixed interest securities.

It is our complete independence which allows us to research the entire financial marketplace on your behalf, selecting funds which we feel represent ‘best of breed’ within the various asset classes. We are pleased to report that this process has proven particularly effective for Argyle clients during 2006.

Another question arising on a regular basis is whether other assets which may be held outside of your Argyle portfolio (such as frozen pensions, single company shares, cash ISA and cash deposits) can be included within the wrap account. The short answer is yes, there is no reason why other such assets can not benefit from the same investment approach and we will be writing to you again in this connection, in the very near future.

However, if you would like to discuss the matter more immediately, please do not hesitate to contact us.

Philip Melville

www.argylefinancialgroup.co.uk