Traditionally, the majority of private investors and business owners have placed investments with insurance companies or directly with fund managers. Over time, this can lead to a disparate collection of ‘packaged’ products that are not cohesively managed and are impossible to keep track of.
More worryingly, many investments are held in ‘managed’ or ‘with profit’ funds, which have, historically, not performed due to passive management resulting in poor investment strategy. This can be exacerbated further by a succession of takeovers and mergers, as seen in recent years. This has affected underlying managers’ focus on managing their clients’ funds. Investors generally receive annual – or six monthly at best – valuations, and are rarely kept informed on how the global economy is affecting their investments.
At btam, we operate rather differently. We use the latest technology to manage clients’ investments from a sole point of control, ensuring that the process is transparent all year round. More importantly, it means we can make changes to clients’ investments when we need to: quickly, efficiently and cost effectively.
Our process begins with an initial meeting where, together with our client, we will assess ‘risk tolerance’ based on an understanding of their financial circumstances and needs. Once a client’s risk tolerance level is agreed, we will recommend a portfolio, or combination of portfolios, that best suit their financial requirements.
We have designed five risk-based portfolios with a globally diverse spread of investments across all asset classes. Portfolios are created using a mix of unit trusts, OEICs and index funds, following in-depth research of individual funds, their fund managers and their investment philosophy.
Based on a thorough analysis of the global economy, we ensure that asset allocation for each portfolio is poised to take advantage of the ever-changing economic climate. Research has shown that 90% of performance can be attributable to asset allocation, hence btam’s significant focus on this.
Where we feel changes should be made to a portfolio due to the economic landscape, we will make recommendations and agree any changes. What’s more, our monthly investment briefings and quarterly reports ensure that clients are kept up-to-date with worldwide economic affairs. Good or bad, we strongly feel that our clients should be in full possession of the facts. And, as you’d expect, clients can view their portfolio online, any time they choose.
At Butler Toll, we believe that effective risk management and optimal portfolio asset allocation are key to successful investment management. Our knowledge and experience allows us to analyse the ebb and flow of the global economy and, subsequently, position client portfolios to take advantage of resulting investment opportunities.
Our investment team meets monthly to review the global macro-economic environment, look at each portfolio’s asset allocation strategy and performance, and use market-leading data analysis from Financial Express to identify suitable funds and fund managers to incorporate into portfolios.
Where possible, we meet fund managers in person to ensure that we are comfortable with their investment approach and risk management. We also validate our fund choices with research from Morningstar OBSR and Standard & Poor’s (S&P). Both place equal emphasis on the importance of regular face-to-face meetings with individual fund managers.
We manage five portfolios with a global multi-asset approach and a main theme of risk diversification. They are constructed using passive and active funds, as our aim is to spread investment geographically and across asset classes in such a way that matches each portfolio’s risk profile. Our active fund managers are all ‘high conviction’ and are thus not overly influenced by benchmarks.
Through our use of open architecture platforms, we are able to give our clients access to a wide range of global funds from the majority of leading investment managers in the industry. We’re also able to offer access to institutional fund discounts to clients, ensuring that charges remain competitive.
Call Butler Toll on 01793 786300 or