This is intended to help product and service providers in the industry who do not have a relationship with us.
1. Discretionary portfolio contents
We invest primarily in collectives to implement the ‘risky’ portion of asset allocation targets. These target ’beta exposures’ result from client-specific, goal-specific, quantitative model runs. ’Risk free assets’, which are all matched to the nature, currency and time horizon of the client’s liabilities or needs, are cash, NS&I certificates and index linked gilt securities, not collectives (including, therefore, no bond funds).
Our research process for collectives is also quantitative, fed by third-party databases and using proprietary applications to eliminate candidates. Our database sources are adequately representative of the product market. Only after these processes do we do qualitative due diligence on qualifying candidate products. It is easier for both parties if we initiate the contact with providers, at this stage.
Most of our holdings of collectives are passive, as this is what results from the tests for ‘plausible alpha’ that we run on actively-managed funds. We also consider deep-discount closed-ended funds as alternatives for passive exposure.
What falls outside our database-driven research process are products for which we have only irregular or exceptional need, including UCIS funds.
If you are a fund house and think your products may be of interest to us but will not be picked up in database-based research, you may email literature to firstname.lastname@example.org. Please note, we operate a paperless office and do not scan hard-copy promotional literature.
The selection process is collaborative and, being quantitative, tightly controlled. Individual investment managers do not have selection discretion.
2. Advisory or financial planning business
We treat our selection of tax wrappers (including SIPPs) and administrative ‘wraps’ (even when required to support discretionary clients) as advisory business. Wrappers are just that: tax-specific accounts in which to hold portfolio contents determined by a separate process. The arrangements need to give us access to securities as well as funds. We do not need literature to review the providers appropriate to these needs.
We do very little pure protection business and do not want promotional material: we search when we have a need.
We do not arrange mortgages but refer to brokers.