1. Selecting your risk profile

2. Strategic investment allocation

3. Tactical investment allocation

4. Fund selection

The team uses a combination of quantitative and qualitative methods to select suitable investments for inclusion in the Model Portfolio ranges and Multi-Asset Blend Funds.

The 7 stages of the selection process:

Selecting your risk profile

You will have developed a relationship with your financial adviser and discussed your financial goals, as well as completing a 'fact find' to understand more about what you are looking to achieve. Within this process, your adviser will gain enough knowledge and understanding of your goals to identify a risk profile level for you. You and your adviser will discuss this to ensure you understand exactly what it means to your investment.

Your financial adviser will select an appropriate model or fund and get in touch with us.

Selecting your risk profile

You will have developed a relationship with your financial adviser and discussed your financial goals, as well as completing a 'fact find' to understand more about what you are looking to achieve. Within this process, your adviser will gain enough knowledge and understanding of your goals to identify a risk profile level for you. You and your adviser will discuss this to ensure you understand exactly what it means to your investment.

Your financial adviser will select an appropriate model or fund and get in touch with us.

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Strategic investment allocation

Beaufort Investment has developed a range of risk profile solutions using a combination of assets.

The Strategic Asset Allocation (SAA) of a Fund or Model Portfolio is the single greatest determinant of the return outcome for that portfolio, both in absolute and relative terms. The SAA reflects our long term outlook based on expected returns for each asset class, with equities being the key driver of long term returns.  Fixed Income and other asset classes act as diversifiers, with the combination providing the desired return profile for each client.

Strategic investment allocation

Beaufort Investment has developed a range of risk profile solutions using a combination of assets.

The Strategic Asset Allocation (SAA) of a Fund or Model Portfolio is the single greatest determinant of the return outcome for that portfolio, both in absolute and relative terms. The SAA reflects our long term outlook based on expected returns for each asset class, with equities being the key driver of long-term returns.  Fixed Income and other asset classes act as diversifiers, with the combination providing the desired return profile for each client.

We believe that SAA should be built on blending Equities, Fixed Income and other asset classes to create a diversified portfolio and a desired level of risk. Equity content increases in consistent multiples as the risk of the portfolio is increased. This structure has been derived from more than a decade of research conducted with advisers and feedback from clients, providing investors with a robust structure that incrementally increases underlying risk with each step in the risk profile.

Tactical investment allocation

To augment the strategic returns of your portfolio, we implement our shorter-term investment views via our Tactical Asset Allocation decisions (TAA). This consists of moving the asset allocation weight of the asset class which we take a view on away from the baseline SAA weight. The underlying assumptions for these decisions are challenged on a monthly basis, during our Investment Committee meetings.

 

We monitor a variety of metrics on a weekly basis, to attempt to identify market mispricing and opportunity in which we can earn excess risk-adjusted returns. We employ a variety of proprietary tools to help us achieve this.

Tactical investment allocation

To augment the strategic returns of your portfolio, we implement our shorter-term investment views via our Tactical Asset Allocation decisions (TAA). This consists of moving the asset allocation weight of the asset class which we take a view on away from the baseline SAA weight. The underlying assumptions for these decisions are challenged on a monthly basis, during our Investment Committee meetings.

 

We monitor a variety of metrics on a weekly basis, to attempt to identify market mispricing and opportunity in which we can earn excess risk-adjusted returns. We employ a variety of proprietary tools to help us achieve this.

1. Idea Generation

From regular meetings and conferences to reading white papers and discussing with connections, ideas and knowledge is gathered to understand the full range of opportunities within the market

2. Analysis


Using web-based analytical tools, the team reviews these potential investments, looking at them over a medium to long term horizon to consider inclusion or exclusion in our fund selections.


3. Data Gathering


If the fund has promising characteristics, the team will explore the opportunity further. They will request a suite of information for each potential fund.


1. Idea Generation

From regular meetings and conferences to reading white papers and discussing with connections, ideas and knowledge is gathered to understand the full range of opportunities within the market

2. Analysis

Using web-based analytical tools, the team reviews these potential investments, looking at them over a medium to long term horizon to consider inclusion or exclusion in our fund selections.

3. Data Gathering

If the fund has promising characteristics, the team will explore the opportunity further. They will request a suite of information for each potential fund.

5. Scoring

Notes are created using a template, which allows a consistent and comparable format for all meetings

6. Investment Asset Allocation Committee

The committee reviews and talks through the findings and makes the decision as a group, whether or not we invest

7. Ongoing Review

We review how the investments are performing, meeting the Fund Manager on a quarterly basis to ensure that the investment process is creating value.

4. Fund Manager Meetings

The Investment team meets the Fund Manager of those funds we want to get to know better and asks challenging questions to really understand the strategy behind how they’ve been built and their future plans