Sinfonia Asset Management has designed a new solution to support IFAs whose clients are worried about the short term performance of the stock market.
The groups says that investing in the stock market involves risk and points out that many IFA clients may not feel comfortable with that concept right now.
Therefore, the Phased Investment Facility means that neither the IFA nor their client is under pressure to decide the "right time" to invest.
In practice a lump sum is invested into a cash pot, paying gross interest. The IFA and client agree a period of up to 12 months over which the money will be transferred in equal amounts into IFSL Sinfonia Funds of their choice, held as OEICs, ISA or SIPP.
The benefit of this approach is that the money is invested at a number of different price points over the selected period, smoothing the effects of stock market fluctuations.
"We are acutely aware of the impact that the current market conditions are having on the confidence of investors to time their investments and capture the best opportunities to meet their strategic goals," says Sinfonia's new MD Andy Richards
"Launching the Sinfonia Phased Investment facility will allow advisers to take positive steps and build up the confidence of their clients by using the strategy of pound cost averaging and smooth out the effects of the volatility in the market."
To comment, contact Charlotte Banks on 0207 484 9943 or email: [email protected]IFAonline
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