Alpha Portfolio

To provide capital growth with some income through an equity focused portfolio complemented with other assets

Performance

The Alpha Portfolio returned +2.1% in October. The total return of the portfolio since inception (31st December 2012) to 31st October 2017, is +63.5%, annualising at +10.7% per annum.

Investment Objective and Approach

The objective of the Alpha Portfolio, over the medium term, is to achieve an above inflation return through a combination of income and capital growth. With equities representing over two thirds of assets, the portfolio will seek to benefit strongly from periods of growth in equity markets but will be exposed to periods of volatility in those markets.

The Portfolio will invest in circa 25 ETFs or other collective funds, which provides a high degree of flexibility to allow the manager to implement any tactical view. The managers’ approach is to provide their own tactical overlay and therefore in most cases passive instruments are used to minimise cost. However active managers are considered for each sector and used in a minority of cases where it is felt justified.

The firm’s investment philosophy advocates complementing a core of traditional assets with exposure to value stocks, smaller companies and emerging market debt. Within equities a global approach is taken with only a moderate UK bias. For alternative investments, lowly correlated, liquid funds are used. There is an absolute focus on risk management, to control volatility, minimise draw-downs and enable maximisation of risk adjusted returns.

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