Risk? What do
The way the investments can go up and down in value, is for most investors, what they mean by risk. This is volatility risk.
Without volatility there is no gain. Volatility creates the possibility of gain as well as loss. It is said " No risk, no gain".
But what risk is the right risk for you?
Your Adviser will help you set this for your investment accounts including Pension, ISA or General Investment Account.
Then they can rely on Brunswick to deliver that Risk level and maintain it.
The graph below shows we have done so for more than 10 years.
With our reliable investment process we expect to do this in future.
Many investment companies offer a suite of investments with increasing levels of risk rising from cash at risk level 1, up to a risk level 10.
The Brunswick Portfolios are available from risk level 3 to 8 and their design means an investor chosing risk level 6 will always perform better than risk level 5 and less well than risk level 7.
This can be seen in the graph below.
10 Year Performance to 31/12/2022 for Brunswick Portfolios Risk Level 3-8 v Cash v Retail Price Index
With the Brunswick Investment Solution, in rising investment markets, taking more risk gives more return, and taking less risk gives less return. This is not the case for many investment solutions.
In falling investment markets, Brunswick portfolios with a higher risk level will fall more than those with a lower risk level.
The graph above shows the Brunswick Portfolios give investors and their advisers a reliable way to get the amount of volatility (risk) they want.
Many investors are taking the wrong level of risk !
This is because they have investments that are not at the risk level they thought they were.
Therefore, their investment returns are unlikely to meet their reasonable expectations.
Again, the Brunswick Investment Solution can answer both these problems with its reliable risk levels.
Many investors are not taking enough risk !
Often investors misunderstand the role of cash in an investment portfolio and believe cash is a ‘safe’ investment.
For example, in the graph above, the return on cash has not even kept up with Brunswick Risk Level 3.
Many investments have misleading risk labels
This can be a big problem for investors.
Many people in the investment industry are not aware of this issue.
Therefore the results may disappoint or disadvantage the investor.