Discretionary investment management services

July 2008

Our award-winning Focus service now provides a means to access a distinctly different discretionary investment management service. Based on the core and explore approach to investment management, our discretionary service is suitable for those who have an investment horizon in excess of three years.

What is the core approach?

The core of our investment solution is a multi-asset class investment that is suitable for a broad range of investors seeking to capture investment returns within a low to medium risk controlled environment. The investment objective is to achieve an absolute return in excess of risk-free cash interest rates over a three to five year period. Allocations may be made across all the major markets and asset classes, including: cash, bonds, commercial property, equities and alternative investments. Performance is then targeted through the tactical asset allocation of a diversified multi-asset class investment portfolio.

Individual portfolios are managed in line with a model and you will receive a quarterly report summarising investment decisions, as well as performance and volatility measures, for the model.

Special features

diversification of risk across major markets and asset classes
value for money compared to actively managed funds
strong track record of performance
sterling or US dollar portfolios
minimum investment level of £100,000 or currency equivalent
minimum withdrawal at any one time of £50,000 or currency equivalent (providing the minimum investment level is maintained).

What is the explore approach?

The explore approach introduces satellite investments which can be used to capture additional sector specific themes, such as energy or precious metals for example, or simply allows increased weightings amongst the various asset classes. If you have £250,000 or more to invest we would recommend building a tailored satellite investment portfolio around your core portfolio. We will work with you to define your specific risk profile, adjusting the range of satellites accordingly.

If you have no need of a core portfolio, or only require a specific thematic element to your investment needs, the satellite approach can be accessed in isolation.

Special features

investment strategy is tailored to meet your objectives and attitude to risk
exposure to diverse markets is ordinarily gained through the use of collectives, using principally managed and exchange traded funds
quarterly detailed valuation, supplemented with an investment commentary and performance review
minimum investment of £250,000 or currency equivalent.

Management fees

Our fees for the discretionary investment service range from 0.65% to 0.95% per annum depending on the value of the portfolio. These fees are inclusive of custody and bank commissions, but exclude market fees, such as brokerage, external management costs, and stamp duty reserve tax, where applicable.

Risks

The value of your investments and the income from them can fall as well as rise, and you may not get back the original amount invested.
Exchange rate changes may affect the value of your investments.
In view of possible exchange rate and market price movements that may take place between receiving your instruction to invest new monies, determining the asset weighting, and placing the deals in the market, the actual amount invested may be more or less than the expected initial cash investment.
In respect of the sterling hedged version of the core portfolio, the equity element is met by investing into a structured product issued by a counterparty bank. In addition to market risk, investors are therefore exposed to the creditworthiness of the counterparty bank, which may vary over the term of the portfolio. If the counterparty bank defaults on the structured product, investors may lose their investment, although we will only structure such products through banks with a minimum “A” credit rating.
Certain withdrawals may require up to 90 days notice, especially where hedge funds are involved.

To find out more about our discretionary investment management services please contact a member of our client services team on (International) +44 (0) 1624 645000 (8am – 8pm) or (UK freephone) 0800 289936 or more information is available online.