How to get an investment portfolio designed and balanced for your future.

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July 08, 2021 - John Woolhouse

How to get an investment portfolio designed and balanced for your future.

When you are investing money, you want to know that the funds your financial adviser selects are going to meet your need for growth or income. You also want to be absolutely sure that your money is invested in line with your attitude and tolerance towards taking investment risk.

When a financial adviser has lots of clients, you want the reassurance that you are not being herded into a generic investment portfolio. When Multi-Asset are heavily used funds can take a one-size-fits-all approach. Every financial adviser takes a different strategy as to how they invest their clients’ money, but at Furnley House we choose to offer a transparent approach to our investment model. We want our clients to see how their portfolios are built, and how they meet their individual goals and plans. We are proud of the investment research expertise we draw upon to make these decisions, research which is on-going and continually working to ensure the best possible returns.

How do Furnley House Advisers build investment portfolios for their clients?

Our advisers have a number of ways they can build an investment portfolio. Our Gemini Proposition, which offers two investment funds designed to be blended together, is one of the strategies we are extremely proud of. It is an investment model developed with our sister company Asset Intelligence Portfolio Management. The two funds offer very different risk and return outlooks, but balanced together in the right ratios, they can deliver an investment proposition tailored to individual and specific needs.

Asset Intelligence is an investment research company and a long-standing partner of Furnley House. The two businesses share the same key principle that has guided their success over the past decade: an ever-present focus on the careful and responsible stewardship of clients’ hard-earned capital. We draw upon the research expertise of Asset Intelligence when making decisions about how we actively manage a large portion of our clients’ money, often referred to as the assets we hold under management.

The idea for the Gemini Portfolios started in 2019. Furnley House and Asset Intelligence identified a key problem with Multi-Asset funds which were widely used by many financial advisers. Our experience was that this type of fund had stopped being an effective investment solution for some clients. Often they weren’t delivering growth when markets went up, nor were they preserving assets sufficiently when markets went down.

After extensive in-depth research on Multi-Asset funds, including their structure and past performance, three major problems were identified. In many cases:

  • Investments were not truly diversified
  • There was typically a UK bias within portfolios
  • There was a noticeable lack of demonstrable “active” management

Together the decision was made that our clients needed a better solution, designed to provide Furnley House financial advisers with the ability to provide their clients with a tailored investment portfolio delivered in absolute accordance to their individual risk profile and appetite for growth.

The Gemini Portfolio was developed, offering a client-centric investment proposition that is created and delivered using a blend of two Gemini Portfolio funds which are actively managed and produced by Asset Intelligence Portfolio Management. These are the VT Asset Intelligence Defensive Fund and the VT Asset Intelligence Growth Fund. The two funds were created in partnership with T. Rowe Price, the multi-award winning global investment management business, providing added security and integrity.

We blend these two Gemini portfolio funds to create individual investment portfolios to meet the individual needs of our clients. The percentage of money that goes into each fund depends on the clients’ outlook and investment needs. This decision is based on the information provided in a detailed fact find which covers both investment moneys but also the broader financial situation of each client. Not only do our clients draw upon the expertise of our financial advisers, they also benefit from the significant investment research and active fund management of Asset Intelligence and T.Rowe Price.

Tell me more about the two funds in the Gemini portfolio.

The VT Asset Intelligence Defensive Fund is designed to preserve the real value of capital by providing investors with diversified exposure to a range of low to medium risk listed assets.

Predominantly these will consist of government bonds and investment-grade corporate bonds. The strategy is an actively managed “fund of funds”, investing in a selection of collective investment vehicles with a range of different mandates and styles. The strategy adopts a global approach to asset allocation, allowing the fund manager to invest in opportunities from around the world and spread risk across a wider investment spectrum. This fund is suitable for investors seeking diverse exposure to lower risk assets and/or as part of a blended portfolio.

The VT Asset Intelligence Growth fund seeks to maximise growth potential by providing investors with diversified exposure to a range of higher risk assets. These will consist predominantly of international equities alongside smaller holdings in higher-risk fixed interest assets. The strategy is an actively managed “fund of funds”, investing in a selection of collective investment vehicles with a range of different mandates and styles. This fund is suitable for investors seeking diverse exposure to higher risk assets and/or as part of a blended portfolio.

Whilst past performance is no guarantee of future returns, a blend of these two funds is established to provide investors with a portfolio which aligns to their needs and risk profile. It can also be adjusted, so if circumstances change, the balance can be adjusted to make it more aggressive or more cautious to meet revised long-term investment goals. The Gemini Portfolio can be used to maximise tax efficient ISA allowances, and also blended into an investment portfolio for children.

Furnley House also offers a number of additional tailored investment options, which can be used as an alternative or to complement the Gemini Portfolios. This can include meeting a specific brief, such as investing in green or ethical funds, now referred to as ESG investments.

Learn more.

If you would like to find out more about investing your money, call Furnley House and ask to speak to one of our Independent Financial Advisers. Our advisers can help you on your full financial planning needs. Call 0116 269 6311 or email info@furnleyhouse.co.uk.

 

Past performance is not a reliable indicator of future performance.

The value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.