Weathering a storm
In uncertain times, portfolio management can help you weather market turbulence. Carl Lamb explains how
Being a wise investor isn’t just a case of picking the right investment elements for your portfolio and then letting it sit there. In today’s markets, values do go up and down and your best chances of a successful investment strategy will come from being pro-active. However, most of us lack the skills and the time to monitor and adjust our own portfolios.
Discretionary portfolio management is a service where investment specialists do the job for you. They constantly watch market indicators so are then able to make informed decisions about the future performance of the content of your portfolio and change its elements accordingly.
It’s called discretionary because you give the portfolio managers the authority to use their discretion to make what changes are needed… For many investors, the most cost-effective form of portfolio management is via model portfolios. These are investment portfolios that are designed to align with a specific risk profile that can be matched with the investor. These portfolios are regularly ‘rebalanced’ within the parameters of the risk profile so are adjusted as needed to maintain optimum performance.
At Smith & Pinching, we have our own team of portfolio managers so our clients get portfolio management as part of our core investment service. We also have our own model portfolios and we are confident that there’s a suitable portfolio in our range for most investors. In addition to our standard range, we also have ranges aimed at those looking for ethical
investments, low charge and passive investing. The passive range comprises funds which aim to replicate performance of a benchmark index, rather than trying to actively buy and sell in order to outperform it. This approach reduces underlying management costs and it is therefore the cheapest range.
Clients who invest in our model portfolios receive quarterly valuations of their investments together with market commentary detailing what has changed within their holdings and why.
We also offer a more bespoke approach with the use of individual bespoke discretionary managed portfolios. These portfolios are customised to the individual’s requirements and circumstances and are actively managed on a daily basis.
Our portfolio managers will adjust the investment mix as necessary within the risk and preference parameters agreed with the client.
Markets look set to remain volatile for some time. We believe that portfolio management will play a key role in ensuring that clients’ investments can weather any storms ahead. N
Any opinions expressed in this article are subject to change and not advice. Any solution described may not be suitable for everyone. The value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested. The tax treatment of investments depends on individual circumstances and is subject to change.
ABOVE: You can take steps to make the most of your portfolio