Threesixty, the financial adviser support services firm, has appointed Square Mile Investment Consulting & Research to launch a range of five outcome-focussed model portfolios. Each mandate will seek to deliver investment returns aligned to one of five specific objectives: capital preservation, inflation protection or one of three levels of income.
The five mandates will be managed within the following parameters:
• Capital Preservation - aims to combine capital preservation and 2.5% annual returns over rolling three year periods;
• Inflation Protection - aims to produce returns of CPI+2% pa over the longer term (five to seven years);
• Income 1 - primary objective of a sustainable yield, expected to be in a range of 3% to 4%, with a secondary volatility consideration, expected to be modestly higher than bonds;
• Income 2 - primary objective of a sustainable yield, expected to be in a range of 3.5% to 4.5%, with a secondary volatility consideration, expected to be between bonds and equities;
• Income 3 - primary objective of a sustainable yield, expected to be in a range of 4% to 5%, with a secondary volatility consideration, expected to be close to equities.
The model portfolios will be comprised of open ended funds and will be reviewed on a quarterly basis to ensure they remain consistent with their stated objective. Each portfolio will be risk aligned to match definitions via threesixty's Investor Profiler tool and supporting commentary and research will be provided by Square Mile. These new model portfolios complement threesixty's existing Strategic Growth and Tactical Growth portfolios which aim for capital growth across a range of investor risk profiles.
Phil Young, Managing Director of threesixty, said, "threesixty constantly emphasises the importance of understanding and very clearly describing each client's specific goals and objectives. This goes well beyond simply pegging an investment solution to a client's attitude to risk. We are pleased to see advisers now looking for more specific investment solutions. These new investment solutions, with alternative, outcome focussed investment objectives, such as capital preservation (real or nominal) or income generation, are designed to meet this demand. Our due diligence showed that Square Mile were well positioned to deliver this range of complementary solutions for our client firms, and we spent several days on site auditing their processes and interviewing their team as part of this."
Richard Romer-Lee, Square Mile's managing director said, "We place the investor at the centre of our research and assess funds on their ability to deliver on explicit investment outcomes. These five new model portfolios put this belief into practice and answer demand from threesixty client firms for solutions to meet very specific objectives."
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