11 Enhancing our service to you

Enhancing our service to you

We have developed the Law Financial Planning Wealth model portfolio service in collaboration with Brooks Macdonald to further enhance our service to you.

About the Law Financial Planning Wealth Model Portfolio Service (LFP Wealth MPS)

The LFP Wealth Management service aims to source the very best investment solutions that the market can provide. We believe that the best investment solutions involve blending the expertise of active fund management, where we feel an advantage can be gained, with the direct nature of index tracking funds within a single portfolio. The ideal portfolio for our clients will allocate assets from the widest range of asset classes and ensure they mirror the client’s risk profile. Once this is established, the portfolio should constantly rebalance to adjust to changes in global markets and maintain a consistent level of investment risk. Our desire is to deliver all of this whilst offering our clients the value for money they deserve.

We have given the Discretionary Fund Manager, Brooks Macdonald, the mandate to build these portfolios on the Standard Life Wrap. Designed by Law Financial Planning for the benefit of you, our clients, managed by Brooks Macdonald.

About Brooks Macdonald

Brooks Macdonald Group plc, through its various subsidiaries, provides leading investment management services in the UK and internationally. The Group, which was founded in 1991 and began trading on AIM in 2005, had Discretionary Funds under Management of £13.7 billion as at 30 June 2020.

Brooks Macdonald offers a range of investment management services to private high net worth individuals, pension funds, institutions, and trusts. The Group also provides financial planning as well as offshore investment management and acts as fund manager to a regulated OEIC providing a range of risk-managed multi-asset funds and a specialised absolute return fund.

The Group has thirteen offices across the UK and the Channel Islands including London, East Anglia, Hampshire, Leamington Spa, Leeds, Manchester, Taunton, Tunbridge Wells, Scotland, Wales, Jersey and Guernsey.

Brooks Macdonald ethos

Brooks Macdonald was originally formed with the desire to do things differently, an ethos that continues to influence the way they do business today. Brooks Macdonald’s mission is to build robust personal relationships that allow them to provide a high level of service to all partners and clients, both in the UK and internationally.

Brooks Macdonald is dedicated to the highest professional standards and believe in acting with honesty, fairness and clarity in everything they do. Collectively, they endeavour to create solutions that will consistently meet clients’ needs in an increasingly complex and ever-changing world.

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Investment risk

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Risk pro�le 3 Risk pro�le 5 Risk pro�le 6 Risk pro�le 7Risk pro�le 4

LFP Wealth MPS 3

LFP Wealth MPS 4

LFP Wealth MPS 5

LFP Wealth MPS 6

LFP Wealth MPS 7Weighting

International Fixed Interest

Equities

Alternatives

Structured Return

UK Fixed Interest

Cash

Property

Assets are selected from the whole collective universe...

... are chosen using Brooks Macdonald central investment process...

... to create five risk-managed diversified portfolios exclusively for Law Financial Planning.

What is the Law Financial Planning Wealth Model Portfolio Service (LFP Wealth MPS)?

A bespoke, branded investment solution designed by us and managed by Brooks Macdonald

A selection of 5 risk-managed, diversified model portfolios covering a wide range of investment objectives and risk profiles, exclusively for clients of Law Financial Planning.

Available through the Standard Life Wrap service.

A service which provides access to Brooks Macdonald’s award winning discretionary management expertise.

Utilises their proven centralised investment process and is managed by a dedicated team of experienced investment managers on behalf of Law Financial Planning Clients.

How does the service work?

The service invests in a wide range of asset classes, some of which might not otherwise be available to retail investors, enabling Brooks Macdonald to achieve greater portfolio diversification. This technique is used to spread investment risk across many asset classes and investment types thereby reducing overall portfolio risk. Changes made within each risk portfolio will affect all clients within that risk profile simultaneously.

Past performance is not an indicator for future results. This diagram is for illustration purposes only and is not based in actual performance.

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Top down Our Asset Allocation Committee evaluates research and provides guidance on exposure levels to various asset classes,

Bottom upOur sector research teams continually identify and evaluate potential investments across a number of asset classes

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2

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Brooks Macdonald Investment philosophy

Brooks MacDonald investment philosophy and approach is founded on three key investment principles:

Utilise a proven active investment process

Their well-established, centralised investment process combines strategic and tactical approaches to asset allocation with vigorous individual security selection. It allows them to leverage the broad expertise of their asset allocation and investment committees, as well as the in-depth knowledge of their specialist sector research teams. It is designed to identify the best investments amid the ever-changing investment environment and has been proven to add value for Law Financial Planning clients.

Integrate effective risk management

Risk management is central to the investment philosophy. Seeking to produce strong ‘risk-adjusted’ returns; this means that they do not only seek to generate profits, but simultaneously endeavour to limit the potential for losses. To accomplish this they have embedded qualitative and quantitative risk controls into their investment process, while ensuring that adequate portfolio diversification is achieved by investing in a wide range of traditional and alternative asset classes.

Maintain a portfolio focus

To enable them to implement suitable and effective investment strategies for all of our clients, they grant the individual investment managers a level of discretion in managing the LFP Wealth model portfolios to the individual mandates of each model. This discretion is limited within defined boundaries established by their investment and asset allocation committees, thereby ensuring that the influence of the centralised investment process is maintained. As the sector research teams are comprised of investment managers, they ensure that the managers of client portfolios are at the centre of the investment process.

Brooks Macdonald Investment Process

The Brooks Macdonald investment process allows them to create diversified investment portfolios with varying risk profiles. It also ensures that the principles of their investment philosophy are reflected in all client portfolios.

The process combines strategic and tactical approaches to asset allocation (a ‘top-down’ approach) with vigorous individual security selection (a ‘bottom-up’ approach). It is designed to simultaneously determine which areas of the market to invest in and which individual investments to make within these areas. The range of investments include exchange-traded funds, unit trusts, open-ended investment companies, investment trusts and cash.

The process also incorporates a number of controls that are designed to provide an additional layer of risk management. For example, they help to ensure that portfolios are adequately diversified. Brooks Macdonald have developed a risk management and portfolio monitoring system that tests that all models comply with their investment guidelines such as buy list, asset allocation, holding size and asset approval.

Where is my LFP Wealth MPS held

A platform or a ‘wrap’ account combines all of your listed securities, managed funds, shares, insurance and pensions into one account, eliminating some of the administrative burden and paperwork that usually comes with managing a number of individual investments separately. The LFP Wealth MPS will be held on the most appropriate platform for your circumstances making it simpler for you to see a consolidated report on your current financial situation.

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A strong focus on risk

As part of the advice process, your Law Financial Planning adviser will establish your needs and objectives and provide you with a Defaqto risk questionnaire. This will establish your attitude towards risk, capacity for loss, and investment management preferences. This process is to ascertain a suitable level of risk and investment management style for your portfolio. Once complete, you will then be placed within a risk category between 1 and 10.

If, as a result of this process, the LFP Wealth MPS is recommended as a suitable investment strategy for you, then your Brooks LFP Wealth MPS portfolio is created by Brooks Macdonald. This covers Risk Profiles 3 to 7 and the portfolio is numbered accordingly for clarity.

About Defaqto

Defaqto is an independent financial information business, helping financial institutions, financial advisers and consumers make better informed decisions.

Their independent fund, portfolio and product information helps banks, insurers and fund managers with designing and promoting their propositions. They research and analyse more than 43,000 financial products in the UK that change on a daily basis.

They have been doing this for over 20 years, and have 60 experts spending 400 hours a day monitoring the market (as at June 2020). These experts ensure that the information they provide is accurate and up to date. Their experts have done all the hard work so that financial institutions, financial advisers and consumers can make better informed decisions.

For further information, visit the Defaqto website: defaqto.com

About Defaqto Risk Ratings

Our vision is to help people make better informed decisions. Defaqto Risk Ratings are a key element of how we achieve this, by helping advisers match suitable portfolios with their clients’ mandates. Risk Ratings are numbered from 2 to 10, where 2 is a solution that has a very cautious investment approach, and 10 a speculative approach. These match our client Risk Profiles, which range from 1 to 10, and where a client with a Risk Profile of 1 would be most suited to investing in bank account cash (ie a savings product). The highest risk rating also has an upper boundary, and may not be suitable for clients wishing to invest in a very high risk, unbound, solution.

LFP Wealth MPS has received a Defaqto Risk Rating of 3, 4, 5, 6 & 7 for the corresponding Brooks Macdonald LFP Wealth MPS Portfolio 3, 4, 5, 6 & 7.

Important information

Investors should be aware that the price of your investments and the income from them can go down and well as up and that neither is guaranteed.

Past performance is not an indicator for future results. Investors may not be back the amount invested. Changes in rates of exchange may have an adverse effect on

the value, price or income of an investment. Investors should be aware of the additional risks associated with funds investing in emerging or developing markets.

The information in this document does not constitute advice or a recommendation and you should not make any investment decision on the basis of it.

This document is for the information of the recipient only and should not be reproduced, copied or made available to others.

Law Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority. Registered in England No 469162.

Registered office: Henderson Business Centre. Ivy Road. Norwich. NR5 8BF.

Brooks Macdonald is a trading name of Brooks Macdonald Group plc used by various companies in the Brooks Macdonald group of companies.

Brooks Macdonald Asset Management Limited is regulated by the Financial Conduct Authority. Registered in England No 3417519. Registered office:

21 Lombard Street, London EC3V 9AH. Brooks Macdonald Asset Management (International) Limited is licensed and regulated by the Guernsey Financial Services

Commission. Its Jersey Branch is licensed and regulated by the Jersey Financial Services Commission. Brooks Macdonald Asset Management (International)

Limited is an authorised Financial Services Provider, regulated by the South African Financial Sector Conduct Authority. Registered in Guernsey No 47575.

Registered office: first Floor, Royal Chambers, St Julian’s Avenue, St. Peter Port, Guernsey GY1 2HH.

BM024-06/2020

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