“thank you once again and we have no hesitation in recommending your service to our friends.”Mr & Mrs Donald
At Financial Future we believe in building diverse portfolios for our clients so that they do not have all their eggs in one basket.
Financial Future Model Portfolio’s
Model Portfolio’s are a range of investment solutions built using an independent risk-based asset allocation tool provided by Watson Wyatt. We have a range of portfolios matched to risk levels 3 to 7 which covers around 95% of investors.
We use the principle of having a Core and Satellite approach, which means we base the portfolio around one or two more long-term ‘Core’ holdings (such as Managed funds, Fund of Funds or Multi Manager) which are widely diversified across a range of underlying investments and therefore provide a stable foundation on which to build other holdings more tailored to individual portfolio objective i.e. growth or income.
Key to this process is the need to spread the investments to cover types of assets which will react differently from each other to changes in the economic or political circumstance. Because some types of investment are riskier than others (i.e Japan shares are more volatile than UK) the overall balance of risk will be achieved by adjusting the amounts devoted to each type of investment.
How do we select our portfolios?
Our Investment Team meet every 90 days to research, review and decide the content of the portfolios. We use various independent rating agencies such as OBSR which ratings are focused towards qualitative appraisals, Financial Express Crown Ratings which are designed to highlight funds that have had superior consistent performance in relation to risk, relative to their peer groups. Also Citywire ratings are used as they consider all managers who run actively managed funds and assigning ratings to managers’ who achieve or exceed demanding performance based on their 36-month risk records. Of the hundreds of active fund managers only 20% receive a rating.
These ratings plus performance history and volatility along with funds expenses form the core of our in-depth research on a regular basis to create each portfolio.
Monitoring and rebalancing
Funds perform differently in different market conditions and over a period of time your asset allocation can change from the original position. This can result in you becoming more exposed to risk than you would normally prefer. Therefore we will rebalance the portfolio to ensure it remains within the appropriate risk rating.
Please click on the following links to view the relevant portfolio details
Risk Rating 3 Portfolio
Risk Rating 4 Growth Portfolio
Risk Rating 4 Income Portfolio
Risk Rating 5 Portfolio
Risk Rating 6 Portfolio
Risk Rating 7 Portfolio
Please contact us if you would like any further information about these portfolios or our investment strategy.
Your investments my go down as well as up. Past performance is not a guide to future performance.
Financial Future Associates LLP is an appointed representative of IN Partnership the trading name of The On-Line Partnership Limited which is authorised and regulated by the Financial Services Authority.
