If you're looking for professional investment management services in London, we can help. Our discretionary managed portfolio service has been developed to ensure fair treatment of all customers. Our process fully integrates clients’ assets, is conscious of their investment risk parameters and requirements, is transparent and fully interactive. Below we give an overview of this process.
Investment Objective Review And Objective Setting
Whether you're looking for investment management in London or internationally, the key is to ensure that, from the outset, every client has a realistic idea as to what they can expect from TAM. Therefore, before signing up to our services you must ensure that you have established an accurate investment objective with your intermediary. This will form the cornerstone of how we manage your assets. However, we understand that as time goes on, your investment horizons may change and they will be affected by your personal circumstances. We recommend that, if your goals or circumstance change, you inform your financial adviser immediately and re-evaluate your portfolio to ensure it is balanced and in line with these changes. As each investor's objective and risk profile may change according to circumstances, we recommend that these are re-evaluated continually.
Investment Strategy Formulation
Once we have been informed of a client's investment objective, we will propose an investment strategy that we believe is aligned with those requirements and objectives. They form the basis of a strategy that will include both asset and security selection proposals.
Asset allocation is a medium to long-term process designed to capture more macro-economic determined events through investing in asset classes that we expect to appreciate and withdrawing from those we expect to decline. For example, investing in Equities in 2007 (and not Bonds) would have been beneficial, as opposed to 2008 when an emphasis on Bond investment (and not Equities) would have proved a more successful strategy. We attempt to ensure that the asset allocation of the portfolio between the various asset classes (shares, bonds and cash, etc.) is continually managed according to the changing economic cycles and financial markets. However, this process is always managed in accordance with the investment mandate and corresponding risk profile. During certain phases of the economic cycle, asset allocation is the most effective method of maintaining the performance of portfolios.
Fund And Security Selection
It is obvious that no single investment management company or portfolio manager can be a top performer in respect of every geographic region or different type of asset class. We consider a multi-manager approach to any investment portfolio and choose specialist managers for differing investment disciplines. We prefer to diversify amongst known specialists with proven track records. Where appropriate, we may also hold discrete investments in individual securities, if both the portfolio type and risk profile warrant it. The advantage of this diversified approach is that portfolios will be exposed to the investment styles, strategies and positioning of different, often top, investment specialists. This reduces the risk profile of an investment portfolio, in our opinion, as, should one investment house misread the market, it has less chance of having a negative effect on the entire portfolio. We believe such diversification served our clients well during the credit crisis of 2008 & 2009 when, even the most seasoned Managers, potentially faced exogenous risks. We also believe that we avoid some of the more obvious pitfalls that firms make when evaluating Managers i.e. a dependency upon quantitative metrics. We agree that such metrics are objective, cheap, and easy to obtain and they do not require much in the way of judgment. We therefore seek to combine quantitative techniques with an added focus on qualitative analysis. To achieve this, we ensure that our experienced investment analysts are involved in the process of screening, evaluating and ultimately selecting the Managers used within any clients' portfolios.
Performance Monitoring And Review
Each portfolio is individually benchmarked in accordance with risk profiling and is monitored and reviewed by our investment managers on an on-going basis. Each individual fund is also checked for any style shift within the strategy employed to ensure that the continued management is in line with our expectations. We also continually monitor for any deviation from performance expectation against peer group and within strategy to ensure, as far as possible, that the underlying managers do not take actions that may impinge upon their ability to generate on-going satisfactory returns. A more formal review is also regularly undertaken by investment management team in London.