Portfolio Construction & Risk Management

Our Bespoke Investment Management Service and our Model Portfolio Service are based on the following primary objectives:

Cautious

Income

Balanced

Growth

With Bespoke Investment Management, there is also the option to follow

Adventurous

Our asset allocation targets are set centrally, an Asset Allocation Committee (AAC) meeting monthly to provide a guide to Investment Managers as to how capital should be allocated across the asset classes of equity, fixed income, alternatives (i.e. structured products, hedge funds, infrastructure funds, specialist/commodity funds) and cash. (see page 23 & 24 our Terms and Conditions of Business for definitions.)

Investment Managers are also kept abreast of recommendations on individual investments, to include attending an investment meeting each morning.

Flexibility

We also have the flexibility of meeting specific investment requirements and tailoring portfolios to suit. This enables clients who wish to invest in a specific fashion – for example 100% Equity – to do so, whilst still benefiting from our investment process.

Further information

Within the Bespoke Investment Management Service, the proportion of a portfolio held in direct equities tends to rise the higher risk position adopted. Even then, a Cautious portfolio is unlikely to contain direct equity with exposure gained primarily through collective equity funds. (For clients  who do not want any direct equity exposure or with less than £100,000 to invest our Model Portfolio Service is available as an alternative).

All of the investments on our ‘Authorised List’ are given a risk score which is based on the sub-group which they belong to. This enables us to gauge the risk of a portfolio as a whole and providers Managers with guidelines as to what risk score is acceptable for each particular investment requirement.