top of page
bath-abbey-5907908-crop.jpg
INVESTMENT PROCESS

OUR INVESTMENT MANAGEMENT PROCESS​

1. Understanding Risk Needs

 

The portfolios are risk profiled and aligned to match a client’s stated risk appetite.

​​

2. Investment Policy

 

Investment policy describes the client’s investment objectives and the constraints that apply to the client’s portfolio.

​​

3. Dynamic Asset Allocation

 

We deploy a dynamic asset allocation strategy that factors in both future perspectives and correlations. Our view formation process takes into account macro, fundamental, technical, and geopolitical factors. Our risk-first approach prioritizes risks, optimization, views, and volatility. The Black-Litterman Model is used for view generation and portfolio optimization.

​​

4. Security Selection

 

A Buy List is meticulously compiled from an extensive asset universe, encompassing diverse investment options including active funds, indexed funds, and alternative investments. This Buy List consists of funds deemed suitable for inclusion in the portfolio, aligning with specific risk criteria.

​​

5. The Advisor Centre

 

Collaboration with TAC for quantitative and qualitative research for the Blended Portfolios.

​​

6. Portfolio Construction

 

A portfolio is constructed by balancing asset classes, sectors, individual securities based on diversification, client
preferences, and the investment strategy chosen, with asset allocation being the most critical decision.

​​

7. Performance Evaluation and Rebalancing

 

Evaluating portfolio performance and conducting periodic rebalancing ensures they remain in line with the stated risk objectives, ultimately aiming to provide clients with more consistent results. The robust investment process also allows the Investment Manager to alter the asset allocation as and when it is appropriate.

​​

handshake_2618576.png

Dynamic 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 within a proprietary "Risk First" framework.

 

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:

​

Core Range
The portfolios aim to provide capital growth over the medium to long term, keeping within the prescribed volatility limits whilst investing in low cost ETFs or Index funds, physically invested and with a low tracking error. 

​

Core Plus Range

The portfolios aim to provide capital growth over the medium to long term, keeping within the prescribed volatility limits whilst investing in low cost ETFs or Index funds for the core and active funds for the satellite positions. 

​

Defensive Income Portfolio

The AB Defensive Income portfolio is a modern diversified portfolio created to offer low risk and an attractive running yield designed to offer an alternative to platform cash accounts, diversified across a portfolio of larger and fully liquid underlying collective investment schemes. The AB Defensive Income portfolio can be considered cautious, targeting a return above deposit rates whilst aiming to preserve capital.

​

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.

​

Lifetime Portfolio

As the “Baby Boomer” generation begins to retire, the number of clients moving into Drawdown and retirement will expand exponentially. Lifetime portfolio and its investment approach is academically backed and with a focus upon Sequence Risk mitigation and the provision of smoother returns from a globally diversified multi asset portfolio. 

​

Ethical, Socially Responsible [SRI] and Sustainable Portfolios
Alpha Beta offers a comprehensive choice of specialist portfolios designed to meet the needs of those investors seeking either “dark green - exclusive” ethical investment policies to those investors wishing to adopt a “lighter green – inclusive” sustainable investment policy.  Our dedicated investment team offers a track record dating back to 1994 and our proprietary Sustainability Matrix offers clear insight to portfolio selection criteria. 

​

bottom of page