ABACUS MODEL PORTFOLIO SERVICES
An investment philosophy, strategy and tactics, available in any tax wrapper
The world of investing is almost limitless with an often-confusing array of options, theories and approaches. Retail investors have historically been offered packaged products, each with its own unique combination of features. When more than one product was combined into a portfolio, it often became cumbersome and expensive to manage, report on and adapt.
In designing our model portfolio service, we embraced open-architecture and designed a solution that can be used across multiple products. The service is predicated on Modern Portfolio Theory, created by Harry Markowitz in 1952 and the foundation of most professional investment processes worldwide. The theory holds that it is possible to construct a portfolio to maximise expected return, based on a given level of market risk.
At the core of this theory is the practice of asset allocation; distributing capital across equities, fixed-income and cash asset classes, to benefit from the different ways they behave over time. Once the asset allocation is set, we invest in funds that match the asset allocation criteria. These funds are made of a range of underlying company shares and this diversification is an invaluable risk management tool.
QUARTERLY FUND MONITORING
We have an Investment Committee and part of their remit is to analyse market, asset class and sector trends. This is done to maximise investment performance within the stated risk and return parameters of the portfolio.
The market is constantly shifting and while your asset allocation may be perfect one day, it could be out of balance the next. The cost of constant rebalancing outweighs the benefit, so we review the portfolios on a fixed quarterly date and rebalance to the desired model shape.
As part of our client service proposition, your adviser will undertake either a remote or face-to-face review with you, highlighting the performance of the portfolio and any changes that have been made to keep things in line.
OF MODEL PORTFOLIOS
Access to a robust investment strategy designed to create a given return for a given amount of risk.
Asset allocation research is provided by Towers Watson, a leading global actuarial firm.
Access to our team of globally recognised fund managers, who only use daily-traded collective investments.
A clear and fully transparent fee model, with costs minimised wherever possible.
Quarterly reviews with your adviser, as part of the Abacus client service proposition.