Intelligently Designed Model Portfolios

Our unique offering to Financial Planners: 10 Evidence-Based Portfolios designed based on time-tested investment principles, which draws on decades of academic research by renowned economists and practices of leading institutional investors.

Elegantly Curated Client-Ready Content

We create range of premium, client-ready articles that Financial Planners can use to engage clients and prospects about evidence-based approach to investing.

 

Consistent, Repeatable and Process-Driven

We ensure that every decision is tested, documented and backed up with independent research and clear audit trail. No guesswork ’round here!

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Adviser's Alpha Enhanced

Our ongoing portfolio monitoring and governance frees up the adviser’s time to focus on what’s really important to their clients and in the process helping to avoid behavioural mistakes that often damage returns.

Low Cost

The typical  ongoing charge  on the portfolios is of 0.25%, which means clients are given the best possible chances of meeting their goals, at the least possible cost.

Global Asset Allocation

This ensures that our portfolios are not only globally diversified, which means that they are less susceptible to country-specific risk and are able to capture returns across different market.

Risk Rated

The portfolios are mapped FinaMetrica Risk Scores right from the start and rigorously back-tested to ensure they are within the specified risk/return parameter and expected outcomes.

Our Investment Philosophy

Grounded in the work of Nobel Prize winning economists

#1 – Markets Works

In a ground-breaking paper, Gene Fama (1970) demonstrated that, while capital markets are far from perfect,they do a good job of fairly pricing all available information and investor expectations about publicly traded securities. While this assertion has been constantly challenged, most prominently by Shiller, 2003, it remains by far the best evidence on how majority of ordinary investors should approach investing.

Fama

Eugene Fama

Nobel Prize in Economics (2013)

William Sharpe

Nobel Prize in Economics (1990)

#2 - Portfolio Structure Drives Return

Markowitz (1952) and Sharpe (1964) demonstrated that the way to maximize returns for any given level of risk is to combine asset classes rather than individual securities.  Brinson, Hood and Beeower (1986) suggested that 93.6% of the average return variation in a US pension plan portfolio from 1974 to 1983 can be explained by asset allocation. Ibbotson and Kaplan (2000) confirmed that, in fact, asset allocation explains approximately 90% of the variability of portfolio returns over time.  Blake, Lehmann, & Timmermann, (1999) found that the total return  of UK pension funds is dominated by asset allocation. The average return from stock selection is negative, and average return to market timing very negative. Accordingly, ßetafolio is designed using the right mix of mainstream global asset classes, to meet specific risk and return objectives.

#3 – Costs Matter, Hugely

Over long time periods, high fund charges expenses can be a significant drag on wealth. A 2010 Morningstar’s research shows that fund expense ratio is a far more reliable predictor of future performance. William Sharpe (2013) demonstrated that, under plausible conditions, an investor saving for retirement who chooses low-cost investments could have a standard of living throughout retirement more than 20% higher than that of a comparable investor in high-cost investments.  Accordingly our approach is to select low cost funds for us portfolios, with a typical on-going fund expense in a our portfolio of around 0.25%

Dan-Kahneman

Daniel Kahneman

Nobel Prize in Economics (2002)

Shiller_au-731x1024

Robert J. Shiller

Nobel Prize in Economics, 2013

Harry

Harry Markowitz

Nobel Prize in Economics (1990)

Paul Samuelson #1

Paul Samuelson

Nobel Prize in Economics, 1970

#4 - Behaviour Counts. Discipline Pays Off

The work of psychologist Daniel Kahneman and others  has given us a much deeper understanding of our people behave under uncertainty.  All too often, investors let their emotions get the better of them with dire consequences for investment returns. A Cass Business School study by Clare & Motson (2010) showed that the gap gap for an average UK equity fund and a typical UK equity fund investor around is 1.2% a year over the 9-year period ending 2009.  Lukas Schneider (2007) showed that the performance gap was as much as 2.43%pa for UK smaller companies funds and 2.06%pa for growth funds over an 11-year period between 1992 and 2003.  The plausible explanation is that investors are chasing past winners and are therefore ending up buying high and selling low. ßetafolio maintains disciplined approach and stays the course even extreme market conditions. We only work with financial planners  who commit to helping clients to deal with the ‘behaviour gap’ by being the voice of reason in extreme market conditions.   A whitepaper by Vanguard suggests that the discipline and guidance that an adviser provides through behavioural coaching adds an estimated 1.5%pa net return, when compared to an average DIY investor, and could be the largest potential value-add by advisers.  The is what we call “Adviser’s Alpha’

 

Premier

Bespoke portfolios for your firm
£749/mo + VAT
  • Access to CORE offering, plus
  • Bespoke portfolios mapped to ANY risk profiling tool of your choice
  • 6-Monthly Investment Committee Meeting With Your Firm
  • Unlimited Phone & Email Support
What is Evidence-Based Investing?

It’s simply the conscientious, explicit and judicious use of current best evidence in making investment decisions. It draws on research by leading academics and practices of institutional investors to deliver consistent investment success to clients.

 

Do you work directly with consumers?

No. We offer services to regulated financial planning firms and accordingly, this service can only be accessed via an authorised financial planner.

 

Do you work with providers/networks/platforms?

Absolutely. Give us a call.

Can We Tailor The Portfolios To Our Firm?

Absolutely. Just choose our ‘Custom’ Option and we’ll get the process started. We’ll start by firm understanding your views and what customisation you want to make. Then we’ll explore the evidence whether or not this adds value to the portfolios.

This option also includes customising the portfolios to other risk-profiling tools including Distribution Technology, Oxford Risk and others.

 

What do you mean by 'Client-Ready Content'

This is content – videos, articles and infographics –  that you could share with clients, without any need to check with compliance.

No industry gibberish! No questionable and mind-boggling data! Just simple, yet insightful stuff in plain English.

Once we have accepted your subscription, you’ll have access to our content library which includes videos, articles and infographics. You can pick whichever ones you want, add your own logo, put it on your website, include in your Newsletters, share on social media – it’s yours to do as you will.

Off course, we’ll add new content every month. The idea is to present a fresh perspective on the latest debates and conversations about how clients’ monies are invested.