Risk Warning
Important Investment Notes
General
Although Aylwin Limited (or one of its group of companies) is usually able to discount, or rebate, some or all of the initial charges, all investments should still be held for the long-term.
The information on this website is provided solely to enable you to make your own decisions. The investments and/or investment services referred to may not be suitable for all investors. If you need advice, you should consult our Financial Advisors.
The price and value of investments and their income fluctuates: You may get back less than the amount you invested. Past performance should not be seen as an indication of future performance. Exchange rate fluctuations may have an adverse effect on the value of non-UK shares or shares held in a different currency to that of £Sterling.
Where an investment is described as likely to yield income, or as being suitable for an investor who wants an income from his/her investments, you should bear in mind that income from investments may fluctuate and part of the capital may be used to pay that income.
The rules on taxation can change. The value to you of any tax benefits will depend on your tax position. Within a ISA all gains will be free of capital gains tax, and a tax credit will be reclaimed on interest from fixed interest investments.
Cancellation rights may not be available.
The investments featured do not provide capital guarantees like a deposit account and are not readily accessible (Unless specifically advised otherwise).
In addition to any initial charge quoted there may be a bid/offer spread or dilution levy.
Non-investment grade bonds are contained in some funds which carry a risk that the capital value of the fund will be affected because they have an increased risk of default on repayment by the issuing companies compared to investment grade bonds.
Some investments (e.g. some AIM stocks) are less readily realisable than others and it may therefore be difficult to deal in or obtain reliable information about their value.
Before transferring or liquidating an investment you should ascertain whether exit or initial charges will be levied and then carefully consider whether you believe it will be beneficial to you over the period of the investment to proceed. If investments are liquidated you may suffer a loss of income or growth, should the market rise, whilst the transfer remains pending.
Product Specific
Portfolio Management service
Investments and the income from them can go down in value as well as up, and as such you may not get back the full amount invested. The past is not necessarily a guide to future performance. Unlike bank or building society deposits, neither income nor capital are guaranteed (To FSCS limits). If you withdraw from these investments in the early years you may not get back the full amount invested as these investments are long-term investments. Aylwin Limited cannot be held responsible for any fall in value of the portfolio purchased by the Manager on behalf of the Client.
This service invests into a range of funds with varying levels of risk. Higher risk and lower risk funds may be purchased for your Portfolio which balance out to meet your overall risk objective for the Portfolio as a whole. Some funds invest into property and the value of that property can be a matter of judgement by a valuer. There may also be liquidity problems that can delay the return of sale proceeds to investors during any period when the property or other investments are not readily saleable. Some funds invest in non-investment grade bonds which bring an increased risk of default on repayment which translates into a risk that the capital value of the fund will be affected. The value of funds which hold overseas investments will be affected by changes in exchange rates. Some funds may invest in countries, sectors or companies which can carry higher risk or which may be less liquid.
Any tax reliefs referred to are those currently applying. Their value depends on the individual circumstances of the investor. Levels and bases of and reliefs from taxation are subject to change.
Before transferring an ISA or other investment you should carefully consider whether you believe it will be beneficial over the period of the investment to do so together with any exit charges and any charges on your new ISA. Your existing holdings may be liquidated to transfer into this service. You should be aware of the possibility of a shortfall if you cancel your investment and the potential for loss of income or growth following the cancellation of your investments or a rise in the markets, whilst the transfer is pending.
The Portfolio Management Service may not be suitable for everyone. If Clients have any doubt whether the Portfolio is or remains suitable for them, they should contact the Manager for advice. Aylwin Limited will only provide advice to Clients and assess the suitability of the Portfolio for Clients when Clients make a specific written request for advice or an assessment of suitability. Clients should inform the Manager of their current investment objectives and financial and personal circumstances before requesting investment advice or an assessment of suitability.
Annuity rates
These may change from time to time and are only guaranteed for a limited time period. An annuity is a long term investment as it cannot be cancelled or transferred to another provider once set up. It does not have a cash-in value. Annuities may have cancellation rights but these are only available for a limited period. Annuities are covered by the Financial Services Compensation Scheme. This acts as a safety net should an annuity company become unable to meet its annuity obligations.
Pensions/ SIPP
If you have, now or in the future, the option of joining an employer's occupational pension scheme, or a pension to which they will contribute, you should consider joining it or making additional contributions to it first. Before transferring you should also check that you will not lose any valuable benefits including Guaranteed Annuity Rates, guaranteed investment returns or membership rights which your policy may include.
Technical Notes
The lifetime allowance (£1.75 million for 2009/10) and the annual allowance (£245,000 for 2009/10) effectively limit the total amount you can pay into pension schemes. The annual allowance could also affect you if your combined contributions into all your pension schemes over two consecutive tax years exceed one year's annual allowance. If you exceed these limits you could be faced with a heavy tax charge. You should seek advice if you think you may be affected by these limits, or don’t fully understand how they work. This is particularly important when you have large benefits (or benefit increases) or pay large contributions. If you have enhanced protection or plan to apply for this, it will be lost if you make a pension contribution. If you make a pension contribution in the two years before or after taking tax free cash lump sum retirement benefits from a pension scheme, HMRC may deem this as pre-planned recycling of tax free cash and levy a tax charge of up to 70%. If you are on a low income and may rely on state benefits in retirement, a pension scheme may not be appropriate. The earliest date at which you can take pension benefits will be 55 from 6th April 2010. This information is based on our understanding of existing legislation as of January 2008 but may be subject to change.
Term Assurance
If you are applying for replacement cover, please do not cancel any existing policy until a new proposal has been accepted and is in force.
VCTs
VCTs are higher risk investments and although some VCTs may be viewed as less risky than others, investors should remember that VCTs as a whole are higher risk investments.
