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, a range of risk adjusted Positive Impact Portfolios.

  • 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.

This Portfolio aims to generate capital growth combined with a steady income over the longer term but with a significantly lower risk/return profile than that of an equity based investment. The portfolio will invest across a range of asset classes with equity exposure capped at 50%.

This portfolio aims to generate capital growth combined with some income by investing across a range of assets. There will be a significant proportion of equity based assets so there is a risk of a significant degree of fluctuation in the value of your capital in return for the potential of good long term returns.

This portfolio aims to generate long term capital growth and is suitable if you are prepared to accept a higher than average degree of risk in the hope of achieving a higher level of return. You need to accept that this strategy involves a high degree of exposure to equity based investments and that the performance of such investments may be volatile.

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.