Charlton Wealth Management

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Investment and Savings

Managing an investment portfolio can be difficult, requires rigorous research and continuous monitoring.  Charlton Wealth takes the complexity out of managing your own portfolio and provides in-depth advice on making the most of your investments.  We will assess your requirements and put together an investment portfolio that offers returns in line with your long-term financial objectives and appetite for risk.

Charlton Wealth Investment solutions

We believe that an investors best chance of meeting their investment goals through pally investing tor the long term. We believe a Globally Diverse asset allocation is a key determinant of a portfolio’s investment return. Whilst all asset classes can be volatile in the short term, continued exposure to asset classes combined with expert selection has historically provided positive real returns.

Globally diversified

Managed by experts

Long term track record

OUR INVESTMENT PHILOSOPHY

Our 4 Principles for Long Term investing

1

In the Long term, cash is not King.

Cash left on the sidelines earns very little over the long term.
Investors who have invested in cash have missed out on the
impressive performance that would have come with staying
invested over the long term.

Source: Bloomberg, Bloomberg Barclays, Dimson, FactSet, FTSE, J.P. Morgan, Marsh and Staunton ABN AMRO/LBS Global Investment Returns calculated from the Yearbook 2008, J.P. Morgan Asset Management. Equities: FTSE 100; Bonds: JPMorgan GBP Government Bond Index; Cash: three-month GBP LIBOR (prior to 2008 cash is short-dated Treasury bills). Past performance is not a reliable indicator of current and future results. JP Morgan Guide to the Markets – UK. Data as of 30 December 2021

2

Source: FTSE, Refinitiv Datastream, J.P Morgan Asset Management. Returns shown are price returns in GBP. Intra-year decline refers to the largest market fall from peak to trough within the calendar year. Returns shown are calendar years from 1986 to 2021. Past performance is not a reliable indicator of current and future results. JP Morgan Guide to the Markets – UK. Data as of 31 December 2020

Volatility is normal

Every year has its rough patches. The red dots on this chart
represent the maximum intrayear equity decline every year. Its hard to predict, but double digit declines in markets are a fact of life in most years.

Volatility in financial markets is normal. The grey bars represent the calendar year market returns. They show that, despite the pullbacks every year, the equity market has recovered to deliver positive returns in most calendar years. The lesson is don’t panic, more often that not a stock market pullback is an opportunity.

3

Staying invested matters

While markets can always have a bad day, week, month or even a bad year, history suggests investors are much less likely to suffer losses over longer periods. Investors need to keep a long-term perspective. This chart illustrates this concept. Investors should not expect the same rates of return in the future as we have seen in the past. But a diversified blend of stocks and bonds has rarely suffered a negative return over any  10 year rolling period in the past 67 years, despite the great swings in annual returns we have seen since the 1950’s.

Source: Strategas/Ibbotson, J.P. Morgan Asset Management. Large cap equity represents the S&P 500 Composite and Bonds represents the Strategas/Ibbotson US Government Bond Index and US Long-term Corporate Bond Index. Returns shown are per annum and are calculated based on monthly returns from 1950 to latest available and include dividends. Past performance is not a reliable indicator of current and future results. JP Morgan Guide to the Markets – UK. Data as of 31 December 2020.

4

Source: Bloomberg Barclays, FTSE, J.P. Morgan Economic Research, MSCI, Refinitiv Datastream, J.P. Morgan Asset Management. Annualised return and volatility covers the period from 2012 to 2021. Vol. is the standard deviation of annual returns. Govt bonds: Bloomberg Barclays Global Aggregate Government Treasuries; HY bonds: ICE BofA Global High Yield; EMD: J.P. Morgan EMBI Global Diversified; IG bonds: Bloomberg Barclays Global Aggregate – Corporates; Cmdty: Bloomberg Commodity; REITs: FTSE NAREIT All REITS; DM equities: MSCI World; EM equities: MSCI EM; Hedge funds: HFRI Global Hedge Fund Index; Cash: JP Morgan Cash United Kingdom (3M). Hypothetical portfolio (for illustrative purposes only and should not be taken as a recommendation): 30% DM equities; 10% EM equities; 15% IG bonds; 12.5% government bonds; 7.5% HY bonds; 5% EMD; 5% commodities; 5% cash; 5% REITs and 5% hedge funds. All returns are total return, in GBP, and are unhedged. Past performance is not a reliable indicator of current and future results. JP Morgan Guide to the Markets – UK. Data as of 31 December 2020

Diversification Works

Don’t put all your eggs in one basket.

The last 10 years have been a volatile ride for investors, with
natural disasters, geo political conflicts and a major financial crisis. Yet despite these difficulties, the worst performing asset classes of those shown here have been cash and commodities. Meanwhile, a well diversified portfolio including stock, bonds and some other asset classes, has provided solid real returns, as well as providing a much smoother ride for investors.

THE VALUE OF YOUR INVESTMENTS AND ANY INCOME DRAWN FROM THEM, MAY GO DOWN. FURTHER, YOU MAY NOT GET BACK THE ORIGINAL AMOUNT YOU INVESTED.

We are a member of the Personal Investment Management and Financial Advice Association (PIMFA)

Charlton Wealth Management

Charlton Wealth Management is a privately owned Independent Wealth Management Practice, offering unbiased Financial Planning Services to Private Clients, Businesses and Trusts.