Fund Selection & Portfolio Creation

Having taken into account your attitude to investment risk and agreed a suitable asset allocation, it is time to select the funds, stocks or particular investments to hold within those asset classes.

Here we describe our procedures fo fund picking, please contact us for more details on other investments. We use a fund selection process which incorporates a variety of different research resources to select a shortlist of funds in each of the asset classes used to build the portfolios. This starts with qualitative research by companies for example Citywire, a company which researches and rates the fund’s manager, as well as Old Broad Street Research which takes an over-arching look at several factors such as the fund’s investment philosophy, investment process and risk control.

From the funds filtered by these process, we apply our own quantitative analysis which considers a number factors such as, but not exclusively, past performance figures. While these cannot and should not be used in isolation to select a fund, when looked at in conjunction with the funds historic performance against others in it’s sector, how well the fund manager has performed and how long the fund manager has been at the fund, it is possible to have a good indication of the funds potential future performance.

It is also important to understand that there can be additional variations within an asset class. For example, within the UK Equity asset class there are a variety of different sectors – from smaller companies to income producing funds. Careful selection within these sub-sectors allows further tailoring of fund selection, depending on attitude towards risk.

The investment process therefore leads to each asset class having a shortlist of funds. From these funds, different portfolios will be created, and while there may be some variation on the portfolios, they are likely to be largely similar across different investment products and providers as they increasingly use large fund supermarkets offering access to many of the same funds.

If you would like talk in more detail about our fund selection process, please use the contact us feature, or call 02380-004444.

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