Building your portfolio
The starting point in building your portfolio is an assessment of your individual investment objective and risk tolerance. Brompton’s private client team, working with your appointed adviser, undertakes comprehensive investment and risk profiling. This is designed to ensure that the assets we manage for you are appropriate for you. It is part of our commitment to treating customers fairly. We also agree with you how often your portfolio is reviewed and rebalanced to ensure it continues to meet your investment objectives as they develop over time. All such decisions are taken with specific reference to your individual tax position and time horizon. Please note that Brompton does not offer investment advice and therefore cannot advise on which strategy is the most appropriate for your portfolio.
To suit the diverse needs of our private clients, we have created a series of investment strategies. They are designed to match the long-term investment objectives and risk appetites of most investors and they can be flexibly blended to achieve your specific requirements. When developing these strategies, our starting point was to establish for each a target annualised return that was realistic. This annualised return was contingent on the degree of risk that was deemed to be acceptable within each strategy and so a target volatility for each strategy was also identified.
The strategy selected acts as a starting point for further detailed discussions regarding a number of key investment criteria. We recognise that there must be a degree of flexibility at the asset class, geographical and even fund level. Clients may have other financial assets outside their Brompton portfolios and these will have a bearing on how each portfolio is composed. The funded investment approach provides the flexibility to cater for these “tailoring” aspects while retaining the qualitative and quantitative integrity of the investment process.
Brompton’s private client team has developed a selection process that can accommodate the wide and diverse requirements of private clients and has identified across all asset classes a select and focussed group of fund managers who share Brompton’s core principles and investment culture. A key requirement is that fund managers show genuine commitment through equity ownership or equity-style incentives and through investment in their own funds. By building strong long-term relationship with these managers, we can combine a clear quantitative process with a strong qualitative overlay. These managers are selected to undertake specific roles within the portfolios and only by close monitoring can we ensure they continue to play their part.
