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Providing you with the latest insights and independent opinion from Square Mile.
The primary value of the strategic asset allocation (SAA) models appears to be as an objective tool that can be used within a suite of financial planning products. Such a financial planning suite may include tools to determine:
In our opinion the SAA models that we have reviewed will perform a satisfactory role in meeting the needs of investors though advisers should be aware of the possible limitations of the approach.
As your business models evolve in the post-RDR world, and your financial planning processes continue to undergo improvement, Square Mile observes that many centralised investment propositions rely on the use of third-party strategic asset allocation tools.
Risk profiling tools have done a great job of aligning funds in a consistent manner across the market and have provided a framework for advisers to manage client expectations – the ‘apples with apples’ philosophy. However there remain a number of challenges, that have varying levels of implications, that one must be aware of within the process. The following discusses some of these.
The purpose of an investment committee is to oversee the group investment strategy from a number of perspectives and to ensure that the best interests of both the business and its clients are at the core of all investment activity. This might range from the selection of suitable attitude to risk and stochastic modelling tools to strategic and tactical asset allocation and fund selection. For many groups, the de-risking and operational efficiency of Centralised Investment Proposition has brought a new perspective in the regular oversight of third party or sub-advised services.
Bespoke managed portfolios:
In the first quarter of 2020, broad measures of UK equity performance were down by about 25%. The manager of a UK equity fund which has that benchmark...
Despite significant uncertainties in terms of the outlook, for investors with a long-term horizon who are looking at European equities, such unprecedented...
It is without question that 2019 was the coming of age for ESG and Responsible investment; new terms for many in the market, and ones that are having a...
Square Mile is an independent investment research business that works in partnership with regulated professional financial services firms. We help advisers to develop informed investment recommendations so that, with their support, their clients can make the decisions that are right for them.
Focusing first and foremost on in-depth, qualitative fund research, we provide tailored support and investment services for financial advisers and institutions.
For us there is only one way to deliver rigorous and insightful qualitative research and that is to invest in professional, qualified and experienced people. For this reason alone we have built one of the strongest and most respected qualitative investment research teams in the UK. Our analysts focus on investment research and meet regularly with fund managers to understand how those managers work, how they think and how they react to markets. We listen, we observe, we test, we challenge, we discuss, we deliberate and we form opinions. Finally, we publish our research and our views. These are based on clearly articulated outcomes and objectives, from which adviser firms can identify suitable funds to meet the needs of their clients.
The result of this work we hope is evident in our Academy of Funds. The Academy is free to access for adviser firms and if you have not yet registered we would invite you to do so by clicking here.