How we Create and Monitor Portfolios

Cost Effective Model Portfolios

GWMAM access Independent, in depth, qualitative research, to construct and maintain our portfolios.

The process is:

We define our model portfolios, based upon client outcome and managed to a range of risk and return profiles. We create a mandate for each portfolio, setting out the objectives, investment parameters, methodology, constraints and charges for each.
We create a strategic Asset Allocation for each model portfolio and analyse these to ensure that they continue to meet the risk and return objectives. We select a blend of funds for each portfolio and then analyse and comment upon our choices to ensure the best possible outcome for our clients.
Each portfolio is analysed at our quarterly investment committee meetings to ensure they remain suitable. Any updates or changes are then implemented accordingly.
Our own investment committee reviews these updates and decides if any changes are needed or not.

Portfolio Risk Levels

Cautious

Cautious investors are prepared to take only a small degree of risk with their financial decisions, more likely very small. When faced with a major financial decision they are usually, if not always, more concerned about the possible losses than the possible gains. It is somewhat more important that the value of their investments does not fall than that it retains its purchasing power. For most, any fall in the total value of their investments would make them feel uncomfortable but for some it would take a 10% fall.

Moderately Cautious

Moderately Cautious investors are prepared to take a small degree of risk with their financial decisions. When faced with a major financial decision they are usually more concerned about the possible losses than the possible gains. For some it is somewhat more important that the value of their investments does not fall than that it retains its purchasing power but for most retaining purchasing power is the more important of the two. For some, any fall in the total value of their investments would make them feel uncomfortable but for most it would take a fall of 10% or 20%, most likely 10%.

Balanced

Balanced risk investors are prepared to take a small to medium degree of risk with their financial decisions, more likely medium. When faced with a major financial decision some are usually more concerned about the possible losses while others are usually more concerned about the possible gains. For some it is somewhat more important that the value of their investments does not fall than that it retains its purchasing power but for most retaining purchasing power is the more important of the two. For some, a fall of 10% in the total value of their investments would make them feel uncomfortable but for most it would take a fall of 20% or 33%, most likely 20%.

Moderately Adventurous

Moderately Adventurous investors are prepared to take a medium degree of risk with their financial decisions. When faced with a major financial decision they are usually more concerned about the possible gains than the possible losses. It is somewhat more important that the value of their investments retains its purchasing power than that it does not fall. For some, a fall of 20% in the total value of their investments would make them feel uncomfortable but for most it would take a fall of 33%.

Adventurous

Adventurous risk investors are prepared to take a medium to large degree of risk with their financial decisions, more likely large. When faced with a major financial decision they are usually, if not always, more concerned about the possible gains than the possible losses. It is somewhat more important that the value of their investments retains its purchasing power than that it does not fall. For some, a fall of 20% in the total value of their investments would make them feel uncomfortable but for most it would take a fall of 33% or 50%, most likely 33%.

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