The most important determinant of return is the asset class into which an investor invests. Riskier assets produce higher returns - but with a greater possibility of loss.

Parmenion believe that individualised portfolios should be constructed using risk based criteria. This means getting the correct allocation of monies to the asset classes. Parmenion specify six assets classes which can be used in any percentage combination to create risk/return trade-offs suitable for almost all clients. What's more we believe that clients and Advisers benefit from the investment models being available to the vast majority of clients. We therefore offer portfolio management for portfolios from just £7,000.

The asset combination decision is one properly based upon the personal circumstances of every investor -not the whim of the investment manager. Today's financial planners use a number of tools in determining the correct portfolio asset allocation for their clients. Once asset allocation has been agreed between the IFA and the client, it is for Parmenion to manage the resulting portfolios.

Each of the asset classes is populated by the collective vehicles that have been carefully researched, both on a quantitative and qualitative basis, and the resulting portfolio performance is measured against relevant benchmarks.

Each quarter the portfolio is re-balanced to maintain the original asset allocation weightings between the various asset classes. This ensures that the risk/return profile of the portfolio remains in line with the parameters set by the client.