This article is the third of a 3 Part series describing our Portfolio Management Styles. We hope this provides additional transparency and helps you better understand our offering. You can read about it in more detail in our whitepaper and check our Investors Corner at any point to access videos and quotes from experts.
There are many investment management firms across Europe that constantly talk about offering their clients “tailored” investment solutions. This usually means offering at most 3 to 5 investment portfolios. This no doubt suits the vast majority of clients, however there are sophisticated investors that want truly tailored investment solutions. For these clients we have created our Custom Portfolio portfolio service.
Custom portfolios effectively provide a blank slate for anyone to select their percentage target weight in the 8 individual asset classes we invest in. Clients can therefore decide what allocation they would like in the 6 regions that make up the MSCI AC World Index for equities as well as the 2 bonds allocations in our portfolios. The customisation occurs on the asset class level, with the portfolio management then simply handed over to us.
As your investment manager we then pick the underlying ETFs for the asset classes in your portfolio and then periodically rebalancing back to your target weights. The natural question that arises is why one would not just do this through a broker? Along with the benefit of periodic rebalancing, the custom goals have no trading costs tied to any buying or selling and also benefit from any internal netting we do. That means if one of your goals requires the selling of one asset and another goal the buying of the same asset we calculate the net trade automatically. As the client drives the asset allocation, any changes in their investment views or investment time horizon will have to be managed by them.
Custom portfolios are our most tailored investment solution and effectively allows for any asset allocation of our selected ETFs that our clients could possibly want. Nevertheless, you can always switch your portfolio style to Starter or Planned should you prefer a simpler approach.