Investment portfolio management
How is the investment portfolio management carried out?
Whether you are new to investing or a seasoned investor, where your money is concerned you must know that it is being well managed. If you decide to proceed with Bluebond your investment portfolio will receive both our best investment portfolio management skills and our best investment advice as the same excellent service is provided to all our millionaire clients. It’s no good setting up an investment portfolio with an independent financial adviser and investment specialist and then leaving it to look after itself as markets change too quickly.
We set up our clients’ investment portfolios on a WRAP platform. This is a ‘one stop shop’ for a huge number of investment funds available in the market, enabling you to take advantage of bulk buying power to reduce the costs of buying and selling your funds. It also allows you to hold any fund within any type of permissible tax wrapper such as Pensions, Bonds (onshore or offshore), and ISAs, tax rules permitting.
A secure internet link to your own WRAP account allows you to monitor your investments on a day-to-day basis (if you wish to), viewing your portfolio as a whole rather than a loose collection of ISAs, Pensions, Shares etc. You can also instruct us to make changes to the various investments between tax wrappers without further form filling. For instance, to use your ISA allowance annually.
We monitor the market on a daily basis to gauge the most favourable time to switch any investment funds into your chosen investment portfolio.
How does the investment portfolio monitoring process work?
- We regularly check the asset allocation for your investment portfolio in case a rebalance is required due to market volatility
- We regularly analyse and compare the performance and volatility of our constituent funds against the relevant sector and similar funds
- We track movement of fund managers and therefore movement of perceived expertise
- We keep a close eye on market opinions, movements and expectations
- We send out valuation statements twice yearly with accompanying analysis of performance
- You can access your investment portfolio at any time online
What if I need to switch funds in my investment portfolio?
Your various funds will rise and fall at different rates which, over time, will alter the overall investment risk of your portfolio. To avoid this deviating too far from your requirements, if markets have been particularly volatile, we will recommend you authorise a ‘rebalancing’ of your portfolio so your risk profile is restored.
Additionally, in different market conditions different funds achieve better results. Most importantly, if we believe the market is going to drop or increase significantly in value, we will advise you to alter your investment portfolio to suit the conditions at the time. Timely switches of funds are carried out for you to reduce the downside risk on your investments. Furthermore, when an actual fund switch recommendation is carried out, as well as withdrawing from deselected funds and switching into more favourable funds, we may also automatically rebalance your whole portfolio.
This ensures that your portfolio remains in synch with your overall financial plan as discussed with one of our independent financial advisers.
Frequently asked questions
Q: Am I locked into this service for a minimum period of time?
A: By using our WRAP account, the service is easy for you to cancel should you wish to switch to other investment managers, but you should be aware that only a few are able to use this type of technology or platform to its full potential. There is no cost to you in cancelling our service unless you change funds as a result of other advice.
Q: Can you guarantee that the performance of my investment portfolio will outweigh the cost of the management fees?
A: No. We have the tools for identifying strong performing markets, funds and fund managers and have a good track record in doing so. There is however, no definitive guarantee that this will produce sufficient additional performance in future.
Q: In the event of a potential fall in the stock market will you move my entire portfolio into cash?
A: No. This is too risky as the expected fall may not occur. We do, however, monitor market sentiment and trends on a daily basis, and are therefore able to proactively recommend adjustments accordingly. Our main emphasis is always on managing your investment portfolio in line with your investment objectives and your perceived attitude or tolerance to risk.
Still have some questions on investment portfolio management?
If you have any questions please call us on 01582 839280 or Email us.
