Portfolio Construction

Our objective is to align your risk and reward profile, which is derived from the financial planning process, to a suitable investment solution.  Our asset management division, HFMC Asset Management Ltd, provides a dedicated team with a wealth of experience encompassing asset management, portfolio analysis and performance measurement.

Our portfolio construction process incorporates risk management into our quantitative approach.  Our job is to strip the emotion out of the investment process and utilise a rational methodology, evaluating whether markets are over or under-valued and making the appropriate buy, sell or hold decisions accordingly.

Our best analysis and ideas are expressed through our “Quadrant” portfolios.  Quadrant represents the ‘core’ of client investment portfolios and can be managed on an advisory or discretionary basis.

Our discretionary Quadrant Model Portfolio Service takes care of the day-to-day management of your investment portfolio, making timely decisions in accordance with your investment objective.

Our aim is to build and preserve your wealth over the long term.

Model Portfolio Choices

The Quadrant Model Portfolios provide a choice from a suite of five actively managed portfolios, each portfolio having its own clearly defined risk/reward profile enabling you to choose the portfolio that is in alignment with your own investment objectives.

  • The Model Portfolio choices are Cautious, Conservative, Balanced, Growth and Aggressive

  • We also manage an Income Portfolio and a Total Return Portfolio

  • We also manage a range of Passive Model portfolios for clients that are more focused on the very long term, accepting increased volatility in exchange for lower portfolio costs

For those wanting more detail…

Portfolios can be either ‘including’ or ‘excluding’ Commercial Property and can have either accumulation or income units

We also offer a range of Offshore custodied, currency share class Models denominated in sterling, euros or dollars

Model Portfolio Characteristics

  • There are typically around 15-20 Funds in each Model Portfolio and we anticipate turnover being low as we are long term investors.

  • The Model Portfolios invest in simple, liquid, transparent, regulated collective funds (OEICS and Unit Trusts). We consider this is an important way to manage operational risk.

  • Overall portfolio risk is managed by asset class diversification coupled with control of volatility and drawdowns.