Discretionary Portfolios

Discretionary Portfolios

Building on the success of our Advisory Portfolios, in 2024 we partnered with a major investment company, A J Bell, to launch a range of portfolios which operate on a Discretionary basis.

Just like our advisory offering, these portfolios blend together a range of different asset classes to create portfolios for clients with different investment risk profiles.

At launch, the range mirrors that of the advisory portfolios, with five portfolios made up predominantly of actively managed funds, five which use passive/index funds as their building blocks and one income portfolio.

The Discretionary portfolios benefit from the additional investment resources and in-depth market analysis of our partner and their institutional buying power which gives access to lower cost share classes. It also means we are able to include forms of investment not included in the advisory portfolios, such as Exchange Traded Funds (ETFs).

What we offer*

Our range of 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 A J Bell investment committee into which Hammond Raggett & Company has regular input. Each of the portfolios are well diversified by both geography and asset class offering. Asset allocation and fund changes are implemented centrally by A J Bell who handle all of the portfolio administration.

Research Capability

We continue to conduct our own in-house research and this feeds into the regular investment committee meetings chaired by our investment partners A J Bell. The research process aims to identify funds and other investments that offer the optimum return for the level of risk taken.

Collaborative and experienced team:
A J Bell’s investment resource is available to Hammond Raggett & Company, and working together through the regular investment forum meetings, we seek to deliver robust portfolio solutions for our clients. The portfolios are built around the Dynamic Planner risk bands in a similar way to our Advisory portfolios, although the blend of assets and markets will differ.

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

Ongoing monitoring:
Each investment is subject to careful analysis before inclusion in the portfolios and those that are included are reviewed regularly to ensure they remain appropriate and that the risk profile of the portfolios stays within agreed bands.

How does Discretionary differ from Advisory?

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.

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.
• Robust and repeatable investment process.
• Available via the A J Bell platform for SIPPs and ISA accounts.