Portfolio Management Service (PMS) Model Portfolios

The IBOSS (PMS) portfolios are based on a strategic asset allocation. The core asset allocation remains unaltered within each risk rating and was reached using a consensus of third party data, based on clearly demonstrable economic principles. We believe that diversification using several funds within an asset class that meet our investment criteria can give added value in the form of reduced volatility without compromising performance and over the last few years we have achieved the performance on a risk/reward basis to demonstrate this. The portfolios have been available via Skandia (SIS) since November 2008 and have full back testing from November 2005. This investment approach ensures we maintain high levels of diversification. The fundamental classes we use are Equities, Fixed Interest, Property and Cash. We will favour managers who have considerable discretion within their fund remit as to where they invest either geographically or by underlying asset class. We specifically do not employ a tactical overlay above the core asset allocation as our research shows us that many intuitive attempts at market timing can actually be counterproductive to performance. Within the PMS - Pensions we also offer life styling, which provides a glidepath to retirement for those clients whom advisers feel it is appropriate for.

Actively Managed (quarterly reviews)

4% Maximum holding per fund (excluding deposit funds.)

Between 35-40 funds used per portfolio.

Use of multiple funds in a sector - no fund manager gets it right every time!

Multiple funds can help reduce volatility and the risk of one fund manager adversely impacting on the portfolio performance.

Passively Managed (quarterly reviews)

Between 12-18 funds used per portfolio.

High level of diversification across core asset classes.

Emphasis on charges, use of tracker funds where possible.

Some considerations for fund inclusion

There is an emphasis on long term discrete performance, we will back the fund managers who have got most investment decisions right most of the time.

Fund manager tenure – how relevant are the funds’ performance figures to the current manager. For overseas equity funds there is a greater emphasis placed on the fund manager tenure and regional experience/knowledge.

Fund Synergy with existing holdings, how will the proposed fund affect the relevant sector?

One of our core strategies is the use of funds with different investment approaches, where each can be successful and not a compromise on performance on a risk/reward basis.

We rarely use single country funds as this limits a fund manager’s options if a country, rather than a region is facing particular issues.

To view the latest performance of the IBOSS Portfolio Management Service model portfolios click here

Portfolio Management Service - Monthly Performance Update

Our latest performance figures are available to view online, why not take a look, generally with out performance across the board we're sure you won't be disappointed.