OUR INVESTMENT PROCESS
Active Asset Allocation
According to the CFA Institute, 91.5% of a portfolio’s return is delivered by asset allocation. At Alpha Beta Partners, our asset allocation views are forward-looking, thus diﬀerentiating us to the majority of our competition. We deploy sound judgment built up over many years of investment management experience and leverage the latest ﬁnancial technology to assist our implementation techniques.
OUR INVESTMENT PHILOSOPHY
Our starting point is to understand the key drivers of economic growth around the world and to project a forward view, rather than simply looking backward to the past. Our approach encompasses active, rigorous asset allocation and stock selection which will adapt to market conditions over time. Our portfolios are monitored consistently to ensure their performance meets our expectations and that risks are understood and well managed.
At the core of our investment philosophy are these principles:
• A diversiﬁed approach to asset allocation and a focus upon liquidity.
• Thorough research leading to the identiﬁcation of predominantly passive investment strategies but also, on occasion, blended with managed active funds which can provide added value.
• Dynamic asset allocation and a truly global approach to investment.
• ‘Risk First’ approach to identify and help avoid the impact of market downturns and to consistently align with a clients’ stated risk appetite.
Our investment process makes use of internal and external research provided by experts to form our investment views. The Investment Committee which meets regularly comprises professionals with over 100 years of combined industry experience.
Our innovative approach adopts institutional techniques coupled with a robust risk management process.
We offer two different types of Wealth Accumulation portfolio an Income portfolio and Decumulation strategies:
6 Risk Rated portfolios - Invest solely in passive instruments: Index Funds and Exchange Traded Funds (ETF's). Each portfolio has an objective to outperform UK RPI over the medium to long term, keeping within the prescribed volatility limits whilst investing in low-cost ETF's or Index funds, physically invested and with a low tracking error.
Core Plus Range
6 Risk Rated portfolios - Invest predominantly in passive instruments with a blend of active funds. Each portfolio has an objective to outperform UK RPI over the medium to long term, keeping within the prescribed volatility limits. We invest in low-cost ETF's or Index funds for the core portfolio and active funds for satellite positions. To achieve the Investment Objectives, we deploy quantitative and qualitative techniques and extensive research that shape our macroeconomic and thematic views.
Balanced Income Portfolio
Alpha Beta Balanced Income portfolio - The portfolio's investment objective is to achieve a combination of moderate-income yield and capital appreciation by deploying a globally focused multi-asset strategy. The portfolio will gain this exposure through collective investment schemes and ETF's where required.
As the “Baby Boomer” generation begins to retire, the number of clients moving into Drawdown and retirement will expand exponentially.
The FCA has initiated Retirement Pathways but has not provided much guidance on investment and withdrawal solutions. With a focus upon Sequence Risk mitigation and the provision of sustainable investor withdrawal rates, Alpha Beta provides thought leadership and cost-effective investment solutions.