What are Portfolios?
The word ‘portfolio’ is simply a shorthand term for the collection of investments you own. Ideally these will be spread across a variety of assets – equities, bonds, property and cash – in a mix that has been determined to meet your specific objectives.
The process of deciding how much to invest in each asset class is known as asset allocation. For example, equities have traditionally offered higher returns over the long term, but at the price of increased volatility. On the other end of the scale, cash has offered both security of capital and stability but with a fluctuating income and, due to inflation, little or no chance of capital growth.
With all investments, actual returns are dependant on many variables, such as the health of the economy in which you are investing, inflation, interest rates and market sentiment. Different elements affecting each asset class may vary and as a result, one asset might be doing very well at exactly the same time as another is doing badly.
However, it is diffcult to predict which one will be doing well or badly at any one time. Hence, if you mix the asset classes together this can help balance out the peaks and troughs of your investment return.
MLP Growth Portfolios 2018 - 2019
MLP have 4 growth portfolios, which we monitor and rebalance in light of prevailing economic circumstances. Each has a different asset allocation, dependent on the risk outlook of the client.
NB. Assset allocation as at January 2018
MLP Income Portfolios 2018 - 2019
We have also designed 3 portfolios that aim to generate an income. These are also maintained and rebalanced.
These can be used in a number of situations. For example, for a client looking to draw an income from a pension, investment bond or a collective investment.
In addition to the asset allocation shown below, each of these portfolios will include a further cash holding, from which income can be drawn. This is to offset the risk associated with drawing income and therefore, having to encash invested units in a declining market. The amount held in this “income pot”, will vary depending on your circumstances.
Below is a risk chart, which shows where our MLP portfolios sit with regard to risk.
Whilst most of our clients use our MLP portfolios, bespoke options are available and these include passive tracker funds and a discretionary management service (DMS).
This can be discussed with your financial adviser.
By utilising an investment platform, we enable you to access a range of tax-effcient investment plans to cater for your circumstances. It allows for the accumulation of wealth, the transition years through to retirement and the eventual distribution of your investment portfolios as retirement income.
This website is designed to give an overview of our risk & investment process. If you would like any further information, please contact one of our advisers.