Our model portfolios
Matching your risk with our model portfolios
Having identified how much risk you are comfortable taking, we then match this same level of risk to one of our specially constructed portfolios.
We utilise Nobel prize-winning academic investment theory to gain exposure to the most appropriate asset in the most diversified and cost-effective manner.
As a result the OCF (ongoing charge figure) for our portfolios ranges between 0.31 per cent to 0.46 per cent, with the number of individual assets held running into many thousands. Our Investment Committee review the portfolios on a quarterly basis and also invest a significant portion of their own wealth.
Maximising returns
Our risk categorisation is measured in terms of the volatility you can expect from a portfolio comprising various different assets that will exhibit different return characteristics. Volatility is simply how ‘bouncy’ returns are around an expected average return. For example, cash has a low volatility as the daily return of a bank deposit rate is very stable, whereas a single share could be highly volatile due to a constantly moving price.
The technical name for the model used by our Investment Committee is covariance analysis and is built using a correlation matrix. The idea is that each of our portfolios attempts to maximise the returns available for a given level of risk, taking into consideration asset data for the last 10 years.
Source: F E Analytics, data to 30/04/23. All figures quoted are on a total return basis inclusive of fund charges but exclusive of platform and advisor fees. We benchmark our model portfolios against the Asset Risk Consultants Private Client Indices www.assetrisk.com
Having identified how much risk you are comfortable taking, we then match this same level of risk to one of our specially constructed portfolios.
Your comfort zone
Although the past is not a guide to the future it does suggest certain patterns and levels of correlation between assets that could provide mathematically higher dimensions of return when blended together.
We cannot tell you how much you will make from being invested in our portfolios over any given timeframe, but we can say that over the longer term those with a higher categorisation of risk should produce a greater return but also exhibit a higher level of volatility.
Model portfolios are not new, but our approach is cutting-edge, creating a range of options tailored for clients. Having identified how much risk you are comfortable taking, we then match this same level of risk to one of our specially constructed portfolios.
Nobel prize-winning academic investment theory, we identify ways to gain exposure to appropriate assets in a diversified and cost-effective manner. Constantly under review by our investment committee, many of whom have invested a significant portion of their personal wealth, we are flexible to changing markets.
Our efficient investment strategy allows for a competitive charging structure. As a result the OCF (ongoing charge figure) for our portfolios ranges between 0.31 per cent to 0.46 percent, with the number of individual assets held running into many thousands. This compares favourably against our peers, with more of your funds remaining invested, enhancing long-term returns.
In summary, a defined structure and risk profile for each model portfolio allow us to match these with individual client requirements. The theory and the practice behind our model portfolios ensure that we can deliver consistent relative long-term returns.
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We are independent, our advice is impartial and our fee structure is transparent. Our approach is simple: we build trusted relationships and focus all our energies to build personalised strategic plans to meet our clients’ individual needs. Helping you achieve your life goals, whatever they may be.
If you’d like to find out more, or learn how we can help you reach your investment goals, get in touch.
(+44) 1799 521017
info@waldencapital.co.uk
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