Core Portfolio

To provide a balance of income and capital growth through exposure to a broad range of asset classes.

Performance

The Core Portfolio returned +1.8% in October. The total return of the portfolio since inception (31st December 2012) to 31st October 2017, is +54.8%, annualising at +9.5% per annum.

Investment Objective and Approach

The objective of the Core Portfolio, over the medium term, is to achieve a return above inflation through a combination of income and capital growth. Equities are the main asset class and the fund will seek to achieve returns well ahead of inflation in periods of strong equity markets, but will experience periods of volatility and will be exposed to equity market falls.

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 manager’s 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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