Model Portfolio
A model portfolio is a pre-constructed portfolio of investment funds that meets a specific risk profile and has a specific mandate, e.g. growth, income or a combination of the two. We have a wide range of model portfolios and we are confident that we can meet your risk profile and investment requirements.
The model portfolios are constructed, reviewed and maintained by our Investment Committee, which comprises some of our most experienced and well-qualified consultants. The Committee meets monthly to ensure that the funds contained within the model portfolios are fit for purpose.
The model portfolios are rebalanced back to the original weightings on a six-monthly basis on 31st March and 30th September. For example, if one of the investments originally had a 5% weighting and, over six months, investment growth resulted in an increase to 6%, a sale of 1% would take place to take it back to 5%. The proceeds of the sold 1% would be redistributed across all funds in proportions that would enable their realignment with the model weightings. This approach ensures that no investment assumes a weighting that could destabilise the overall portfolio in terms of risk and return; however, if the difference on any fund is less than 0.5% of the original weighting it will be excluded from the rebalance, as 0.5% is the tolerance threshold set by Nucleus. (Nucleus is our wrap provider of choice. For more information, please go to the Nucleus Wrap page.
We will not contact you to obtain permission for this automatic rebalancing.
If we identify that changes should be made during the period outside the six-monthly intervals described above, we are required by the Financial Services Authority to contact you to obtain prior permission. It is very important that you take action when we contact you, as this will ensure that your portfolio stays in line with what we think is the desirable model, i.e. that which will most likely meet your goals. If your portfolio were to misalign with our recommended model for too long, there is an increased risk that your objectives will not be met.
If at any time we consider it appropriate, taking into account your circumstances and after discussions with you, it is possible to move you from one model portfolio to another. For example, you may hold a growth model portfolio and you decide you want to start extracting income. Under such circumstances, a move to an income model may be appropriate.
Model portfolios are a cost-effective way of managing investment funds and, due to the wide range available, are suitable for many individuals.
The value of your investment can fall as well as rise and you may not get back the full amount invested.
Contact us today
Speak to an adviser |
01603 789966 |
|
Email your enquiry |
01603 789966
