A BETTER SERVICE Client hub

WELCOME NOTE

As part of our service commitment, we feel it is important to provide you with easy access to information about your investment portfolios and updates regarding any changes. Through this web site, we will share professional opinion on changes and developments in the investment field, providing an area in which our discretionary manager partners can present their investment strategies and processes.

Each month, factsheets for all of our risk rated Multi Asset Portfolios (MAPs) will be updated in this area, along with quarterly portfolio reports and any other relevant updates.

OUR PORTFOLIOS ARE MANAGED BY:

Charles Stanley

Passive MAPs

Waverton Investment Management

Active MAPs

Canaccord Genuity Wealth Management

Direct & Responsible Futures MAPs

Aubrey Capital Management

Progressive MAPs

Saltus Investment Managers

Dynamic MAPs

Cornerstone Passive MAPs

managed by Charles Stanley

The Passive portfolio range is designed to combine the best of active asset allocation with the best of passive investment.

At the core is a dynamic asset allocation process, which means making sure the asset mix in your portfolio changes in line with varying market conditions.  Charles Stanley then use the lowest cost and most efficient index-tracking passive funds to gain exposure to each asset class.

Making intelligent adjustments to a portfolio’s asset allocation has been shown to have the biggest impact on long-term returns.  In our view, choosing individual stocks and shares normally leads to higher costs, increased concentration and underperformance.  With this in mind, instead of ‘stock-picking’, Charles Stanley uses index-tracking funds and Exchange Traded Funds (ETFs) which are designed to give the investor most or all of the return of a whole asset class at very low cost.  Keeping costs low is a sure way to give your capital a better chance to grow over time.

Each Passive portfolio has a targeted level of risk designed to cater for different risk profiles.  The portfolios aim to exploit the continually changing opportunities offered by different asset classes around the world.  The dynamic asset allocation process combines long-term investment in assets most likely to meet investor needs, with shorter-term tactical decisions which can protect their assets in times of stress.

The portfolios are invested primarily in index-tracking funds and ETFs but may also hold other suitable transferrable securities or units in collective investment schemes as well as cash, cash funds or cash ETFs.  We have sophisticated risk management systems in place to ensure that the aggregated investment performance of the underlying holdings in each portfolio is in line with each portfolio’s risk and return targets.

Cornerstone Active MAPs

managed by Waverton Investment Management

The Active portfolios are constructed to seek the optimum balance between risk and reward for each risk category.

In seeking consistent, less volatile returns when compared to the market, the portfolios invest in a diversified range of assets which includes global equities, fixed income and alternative assets.  These asset classes are blended so that the portfolio participates in some of the upside in rising equity markets, but also aims to limit some of the downside when markets are falling.

Portfolios are then populated using a broad range of third party collective investment schemes.  By holding even a small selection of funds within their portfolio a client can efficiently diversify their investments which can help to reduce risk and increase liquidity.  The range of investments that the portfolio will hold include:

  • OEICs
  • Unit trusts
  • ETFs
  • Hedge Fund strategies
  • Investment trusts
  • Sterling cash and other currencies

Investment markets are dynamic and Waverton believe an active approach to investing is important.  This means that portfolios are constantly reviewed and, where necessary, tactically adjusted to ensure that the blend of assets and underlying holdings are appropriate for the current market conditions.

Cornerstone Direct & Responsible Futures MAPs

managed by Canaccord Genuity Wealth Management

Canaccord Genuity Wealth Limited (CGWL) forms part of Canaccord Genuity Wealth Management (CGWM), which operates within the UK and Europe.  Canaccord Genuity Group Inc. (CGGI) was founded in 1950 and in just six decades has grown from a Canadian-based venture capital firm to a premier global financial services firm.  Since it was established in 1950, Canaccord Genuity has been driven by an unwavering commitment to building lasting client relationships, by generating value for individual, institutional and corporate clients through comprehensive investment solutions, brokerage services and investment banking services.

Direct Growth Portfolios

Working closely with Cornerstone Asset Management, we have created four multi asset portfolios.  The aim of the Direct portfolios, managed by Canaccord Genuity, is to provide long term real returns for investors.

There are three parts to our investment process; long term asset allocation, short term tactical positioning and investment selection.  Value is added by each part of the process but we feel our true differentiator comes from our direct equity selection.

Each Direct portfolio has a focused allocation of UK equities, selected by our experienced equity team.  The team spend time to understand the fundamental qualities of a wide range of stocks from the FTSE All-Share, and using this knowledge we select companies that we believe offer better long term returns than the index.

Responsible Futures Portfolios

The traditional approach to ethical investing, introduced to the consumer market in the 1980s, was achieved through a ‘negative screening’ process, which avoided certain sectors.  While this approach means that you are 100% avoiding those activities which may offend you, the ruling out of certain investment sectors can both increase risk and reduce growth potential.

In our view, a strategy which uses positive investment selection, rather than negative exclusion, offers potential for superior investment outcomes and a deeper engagement with the issues that the world needs to tackle.  Working closely with Cornerstone Asset Management, we have created three Responsible Futures portfolios that incorporate the latest trends in responsible investing – positive selection of cutting-edge fund solutions that offer ethical, environmental, social and investment benefits.

The goal for the Cornerstone Responsible Futures portfolios is to combine sound investment with a socially responsible and sustainable mindset, delivering a positive impact.  This should not preclude strong investment performance.

We believe that many of the broad issues facing the world today will be solved through a combination of public (e.g. United Nations Sustainable Development Goals) and private action.  The innovation inherent in solving these issues will have a market value which will only increase through time.  We also believe that, by investing responsibly into these areas, the portfolios can deliver returns at least equivalent to overall markets and in excess of them over the long term.

Cornerstone Progressive MAPs

managed by Aubrey Capital Management

Aubrey Capital Management Limited is a focused global investment manager based in Edinburgh.  We believe in the importance of investing on a global basis in quality long-term assets which can grow ahead of inflation. Our quality bias naturally leads to high exposure to new economy trends and long-term sustainability, whilst avoiding illiquid, opaque or leveraged investments.  The Progressive portfolios combine active, passive and factor/smart beta investments to provide a core portfolio range which is cost efficient and does not compromise on quality or performance.

Each Progressive portfolio is actively managed against a primary risk objective based on the overall allocation to different types of assets.  Across the range, each portfolio holds largely the same underlying investments but weighted appropriately at each risk level in order to aid consistency and transparency.

We monitor risk by using qualitative data on an ongoing basis with a formal review and rebalance the portfolios regularly as required.

Each model is multi-asset and will typically hold 20-25 positions in order to provide diversification without diluting our core quality-based approach.  Equity allocation is based on the MSCI AC World index giving a strong global allocation basis and typically a low weighting to the UK market.  Our research includes an assessment of each investment we hold using our proprietary in-house environmental, social and governance (ESG) process.

Cornerstone Dynamic MAPs

managed by Saltus Investment Managers

At Saltus we believe:

  • Investing should be unconstrained – there should be no built in bias to any asset class and we do not copy or track a fixed benchmark when constructing your portfolio.
  • Controlling risk is at the heart of preserving and growing wealth – the level of risk that you are comfortable with is what guides us in choosing your investments.
  • The best talent is not all in one company – we source and invest with investment specialists who are leaders in their particular asset class.

Each of the Dynamic portfolios is overseen by the full Saltus Investment Committee.  All portfolios are managed with a choice of distinct “risk budgets”, set with reference to the UK equity market.  For example, over the investment horizon the Dynamic 2 portfolio targets up to 33% of UK equity market volatility, the Dynamic 3 portfolio targets up to 50% of UK equity market volatility and Dynamic 4 portfolio targets up to 67% of UK equity market volatility.

Once this level of risk has been identified in conjunction with your Cornerstone adviser, we will construct and manage an investment portfolio for you in accordance with this risk level.  Your Dynamic portfolio will be invested across multiple asset classes, geographies and investment styles to produce a portfolio that is typically much more diversified than the norm.  This is an approach which has helped us to produce award winning performance in the often volatile market conditions since our inception in 2005.

Once we have decided the asset allocation of your portfolio, we select the best managers in each asset class to manage that portion of your portfolio.  These managers are identified by our research process which uses both quantitative and qualitative analysis in order to identify real ‘skill’.  As institutional investors we are able to access exceptional managers and strategies from across the globe, many of whom are unavailable to the wider UK individual client.  We believe in active engagement with our clients and would be delighted to engage with you and your Cornerstone adviser at your convenience.

Risk warnings

Please note that the value of investments, and any income derived from them, can fall as well as rise and you may get back less than the amount originally invested.  The Sterling value of overseas investments and the income from them will fluctuate as a result of exchange rate variations between currencies.  Past performance is not a reliable guide to future performance or returns.  The tax treatment of investments depends on each investor’s individual circumstances and is subject to changes in tax legislation.