Advisory Portfolios

Advisory Portfolio Service

These portfolios are now closed to new investors.

Our Advisory Portfolios were originally launched in 2012 based around actively managed funds. Building on the success of our Advisory Managed Portfolios, in 2019 we extended our range of portfolios to include a number of low-cost Index tracking fund-based options for the cost-conscious investor.

Each of the portfolios operate on a multi asset basis, blending together different asset classes to meet different risk/return profiles, suitable for a range of investors. The Advisory Managed Portfolios use actively managed funds to gain exposure to the different asset classes and geographical regions whilst the Index portfolios use passive investment funds as their building blocks.

We also operate an Income Portfolio that is run on a balanced risk basis and aims to provide both income and capital return.

Note: Our Advisory Managed, Index and Income Portfolios are currently available to existing investors via a limited number of platforms and will eventually be closed across all platforms. Investors wishing to invest in a managed solution may continue to do so via the Discretionary Portfolios available through the A J Bell platform.

What we offer*

Our range of advisory investment portfolios consists of a series of risk-targeted blends of different asset classes and geographical regions built from best of breed active managers or index-tracking funds. We seek to maximise returns whilst keeping volatility within specified risk bands. Each portfolio has been benchmarked against a suitable investment sector so its performance can be considered in relation to leading industry benchmarks.

We match clients to one or more of our portfolios based on their individual needs, risk tolerance, capacity for loss, and additional factors such as cost sensitivity. On an ongoing basis, we consider whether portfolios remain suitable for investors.

*We recognise that for some investors the portfolio service is not appropriate and for them, we offer further investment solutions, which may include a blend of “managed” funds or in some cases, a bespoke portfolio.

How we operate the portfolios

All strategies are managed with a dynamic asset allocation overlay, guided by the Hammond Raggett Investment Committee. Each of the portfolios are well diversified by both geography and asset class offering.

Research Capability

Our in-house research aims to identify funds that offer the optimum return for the level of risk taken. The portfolios have a successful track record and benefit from a strong and repeatable process. Selecting the right managers can be a complex process and we have developed a proprietary ranking system for fund selection. The ranking method monitors thousands of funds and allows us to deliver exceptional manager research.

Collaborative and experienced team: Leveraging the investment resource available to Hammond Raggett & Company, asset allocation views of the Central Investment Committee are reflected in the portfolios by the Team, whilst still adhering to the Dynamic Planner risk levels.

Diversification: The portfolios are diversified across a broad range of different asset classes, including equities, fixed income, and alternative assets, and constructed using what the Team believes to be the optimal mix of underlying investments to meet investors’ objectives at each risk level.

Ongoing monitoring: Each fund is subject to careful analysis before inclusion in the portfolios. We undertake rigorous internal monitoring of the portfolios on an ongoing basis to ensure the investments we hold remain appropriate and that the risk profile of the portfolios stays within agreed bands.

How does Advisory differ from Discretionary?

In an advisory portfolio, no changes will be made the investments held or their proportions without us contacting you and asking for your agreement to proceed. When we do, we will set out the reasons for the proposed changes. In a Discretionary Portfolio, changes can be made without you having to agree to them in advance which means there isn’t the need for the same level of interaction from investors and it will generally be possible for changes to a portfolio to be implemented more quickly than in an Advisory portfolio. In addition there will be differences between the costs of the portfolios as a result of the different underlying holdings and discretionary management charges.

Typical Profile

• Minimum – £100,000 or Monthly £2,000 regular
• All portfolios are risk mapped against Dynamic Planner.
• Portfolio services are included in our ongoing advice charge for Core Service Levels and above.
• Competitive fees on underlying holdings.
• Quarterly rebalancing.
• Investments supported by our Investment Committee.
• Robust and repeatable investment process.
• Available on a limited range of investment platforms.