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The path aheadManaged portfolios for your clients
For professional advisers
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At Brooks Macdonald, our aim is to enhance our clients’ wealth through the provision of our investment solutions.
We seek to build trusting relationships founded on the professionalism of our people, who are selected for their ability to relate to clients, analytical skills, outlook and drive. Our employees have allowed us to instil a culture that supports consistency in every aspect of our business.
Together with our transparent investment process, this allows us to partner with professional advisers to complement their services and benefit our mutual clients. These include private investors, trusts, charities, pension funds and institutions.
Our approach
All services, unless otherwise stated, provided by Brooks Macdonald Asset Management Limited.
• A selection of ten risk-managed, diversified model portfolios covering a wide range of investment objectives and risk profiles, for clients with £20,000 or more to invest.
• Exclusively available through professional advisers.
• Provides access to our discretionary management expertise.
• Utilises our proven centralised investment process.
• Managed by a dedicated team of experienced investment managers.
• Portfolios are regularly rebalanced to ensure all clients remain in line with the asset allocation of their chosen model.
What is our Managed Portfolio Service (MPS)?
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• As well as being a stand-alone service, our MPS can be held within a range of tax wrappers, including:
• Self-Invested Personal Pensions (SIPPs) • Small Self-Administered Pension
Schemes (SSAS) • Individual trust and charity accounts • Onshore/offshore bond accounts • New Individual Savings Accounts (ISAs)
Assets from the whole collective universe…
How our MPS works Key benefits of MPS
Utilise annual capital gains tax (CGT) allowances
Assets are held in a segregated portfolio which provides an opportunity to use Capital Gains Tax (CGT) allowances as assets are bought and sold, where relevant. Please note that Brooks Macdonald does not actively manage any individual client’s CGT position.
Consolidation of assets
Consolidate assets to maximise the potential for returns and simplify administration.
Unit trusts, investment trusts, open-ended investment companies, exchange-traded funds, structured products and cash can all be held within a single portfolio.
Flexible income withdrawal options
Income can be withdrawn monthly, quarterly, annually, or as arising.
Institutional buying power
Provides access to clean share classes and institutional buying power, which benefits clients through lower charges from fund management companies.
Cash rate
0.40% below Bank of England base rate paid out on whole cash holdings.
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The service invests in a wide range of asset classes, some of which might not otherwise be available to retail investors, enabling us to achieve greater portfolio diversification. This technique is used to spread investment risk across many asset classes and investment types thereby reducing overall portfolio risk. Changes made within each risk portfolio will affect all clients within that risk profile simultaneously.
Assets from the whole collective universe…
…are chosen using our central investment process…
...to create ten risk-managed diversified portfolios consisting of eight
actively-managed and two passive strategies
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Our investment philosophy and approach is founded on three key investment principles:
Utilise a proven active investment process
Our well-established, centralised investment process combines strategic and tactical approaches to asset allocation with vigorous individual security selection. It allows us to leverage the broad expertise of our asset allocation and investment committees, as well as the in-depth knowledge of our specialist sector research teams. It is designed to identify the best investments amid the ever-changing investment environment and has been proven to add value for our clients.
Integrate effective risk management
Risk management is central to our investment philosophy. We seek to produce strong ‘risk-adjusted’ returns; this means that we do not
Our investment philosophy
only seek to generate profits, but simultaneously endeavour to limit the potential for losses. To accomplish this we have embedded qualitative and quantitative risk controls into our investment process, while ensuring that adequate portfolio diversification is achieved by investing in a wide range of traditional and alternative asset classes.
Maintain a portfolio focus
To enable us to implement suitable and effective investment strategies for all of our clients, we grant our individual investment managers a level of discretion in managing model portfolios to the individual mandates of each model. This discretion is limited within defined boundaries established by our investment and asset allocation committees, thereby ensuring that the influence of our centralised investment process is maintained. As our sector research teams are comprised of investment managers, we ensure that the managers of client portfolios are at the centre of our investment process.
Figure 1: Our investment process consists of a number of key elements that work together to enable us to provide all of our clients with efficient investment solutions.
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Our investment process allows us to create diversified investment portfolios with varying risk profiles. It also ensures that the principles of our investment philosophy are reflected in all client portfolios.
The process combines strategic and tactical approaches to asset allocation (a ‘top-down’ approach) with vigorous individual security selection (a ‘bottom-up’ approach). It is designed to simultaneously determine which areas of the market to invest in and which individual investments to make within these areas. The range of investments include exchange-traded funds, unit trusts, open-ended investment companies, investment trusts and cash.
The process also incorporates a number of controls that are designed to provide an additional layer of risk management. For example, they help to ensure that portfolios are adequately diversified. We have developed a risk management and portfolio monitoring system that tests that all models comply with our investment guidelines such as buy list, asset allocation, holding size and asset approval.
Our investment process
Top down Our Asset Allocation Committee evaluates research and provides guidance on exposure levels to various asset classes, based on different risk profiles
The MPS portfolio suiteThe investment team constructs a suite of model investment portfolios, in line with our centralised investment process
Bottom upOur sector research teams continually identify and evaluate potential investments across a number of asset classes
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Fees and charges
Portfolio type
Active
Passive
Initial charge (cash investment)
Initial charge (in specie investment)
Annual management charge
Dealing charges
ISA charges
nil 0.50% 0.75% +VAT nil nil
nil 0.50% 0.50% +VAT nil nil
A professional adviser’s initial and / or recurring charge may be added subject to agreement between client and professional adviser.
Our MPS range
Risk profile Typical equity exposureLaunch dateDT
ratingFinametrica
best fitInvesting for
Defensive income
TBC
TBC
4
5
5
6
6
7
4
3 39-57
69-77
58-67
77-85
86-100
58-67
69-77
68-76
79-87
91-100
September 2009
Income May 2008
Income January 2015
Income & growth March 2015
Income & growth September 2003
Income & growth March 2011
Income & growth January 2013
Growth March 2005
Growth January 2013
Growth January 2015
Low
Low-to-Medium
Low-to-Medium
Medium
Medium
Medium (Passive)
Medium-to-High
Medium-to-High (Passive)
High
High
0%-30%
30%-55%
30%-55%
55%-75%
55%-75%
55%-75%
75%-95%
90%-100%
75%-95%
90%-100%
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For clients
Twice-yearly portfolio valuation reports
Detailed portfolio valuation reports are provided to clients on a semi-annual basis. These contain:
• A breakdown of their investment.• Performance compared to the relevant
benchmark.• Details of payments received or remitted.• Purchase and sale transactions.• Any charges, including fees.
Annual tax report
An annual tax report is provided to all clients, along with transaction history, income and capital gains statements.
Online access
Clients can access portfolio valuation and transaction history reports at any time via our secure website.
Additional services
One of our key differentiating factors is the importance we place on the flow of information to professional advisers. This is demonstrated through the following additional services.
Portfolio update email
When we make changes to a portfolio, such as fund switches or asset allocation decisions, we will inform you of the change via email. The email contains the details and rationale of each change, enabling you to have informed discussions with your clients.
Factsheets
We produce quarterly factsheets with detailed performance information.
Two versions are produced:• A technical version that provides risk / return
analysis for professional advisers.• A client-friendly version.
Direct contact with investment managers
Should you have questions, or if you wish to discuss the portfolios at any time, you can contact our investment managers directly.
Online access
As an adviser you will have access to portfolio valuation and transaction history reports for all of your clients. These reports are updated daily and are accessible at any time.
In addition, you will be able to see an up-to-date figure of the total assets we manage for all your clients.
Back office CRM integration
We provide daily portfolio valuation and transaction reports to a number of back office CRM systems. This enables you to ‘pull-through’ all Brooks Macdonald valuation data to your own system and provide seamless reporting to your clients.
We have existing links with the following systems:• Iress (Adviser office) - formerly Avelo• Intelliflo (Intelligent office)• Sammedia (Moneyinfo)• Enable• Time 4 Advice (Curo)• Plum
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Our MPS is only available to clients through professional advisers authorised to give financial advice.
You can access our MPS either directly or via a number of selected platforms.
Please contact our new business development team on 020 7408 5560 or at [email protected] for more information.
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Mark Shields
Mark joined Brooks Macdonald in 2007. He holds the position of Investment Director. Mark is responsible for co-managing the Managed Portfolio Service and Multi-Asset Fund range. His specialist research sector is UK collective funds.
Mark has obtained the Chartered Institute for Securities & Investment (CISI) Diploma, units 1 and 2 of the Certificate in Financial Planning (CFP) and the Investment Management Certificate (IMC).
Frank Atkins
Frank joined Brooks Macdonald in 2010. He holds the position of Investment Manager. Frank is responsible for providing performance data for the Managed Portfolio Service. He is a
member of both the global equity and Far East and emerging markets research teams.
Prior to joining Brooks Macdonald, Frank worked for Barclays Wealth. He holds the Investment Management Certificate (IMC).
Jonathan Webster-Smith
Jonathan joined Brooks Macdonald in 2001. He holds the position of Director. Jonathan is lead manager of both the Managed Portfolio Service and Multi-Asset Fund range, and is a member of the asset allocation committee.
His specialist research sector is fixed income.
Jonathan is a Chartered Member of the Chartered Institute for Securities & Investment (CISI).
Jim Mackie
Jim joined Brooks Macdonald in 2014. He holds the position of Investment Director. Jim is responsible for assisting with the management of the Managed Portfolio Service and Multi-Asset Fund range.
Jim is a Chartered Member of the Chartered Institute for Securities & Investment (CISI). He has worked in the financial services industry since 1998.
Investment team
Accessing our MPS
BMAM/1196.6/APR16
Important information
The value of your investments and the income from them may go down as well as up, you could get back less than you invested. Past performance is not a guide to future performance.
Changes in exchange rates may have an adverse affect on the value, price or income of an investment. Investors should also be aware of the additional risks associated with funds investing in emerging or developing markets. Tax treatment depends on individual circumstances and may be subject to change in the future.
The information in this document does not constitute advice or a recommendation and you should not make any investment decisions on the basis of it. It is for the information of the recipient only and should not be reproduced, copied or made available to others. Brooks Macdonald, its subsidiaries and/or their officers, directors and employees may also own and trade in the underlying assets.
The Distribution Technology and Finametrica ratings are designed to help professional advisers recommend the appropriate MPS portfolio after they have assessed the client’s attitude to risk using these risk profilers. Risk profiling is only a part of overall suitability assessment and this guide should not be relied upon in place of a comprehensive suitability assessment. The professional adviser remains responsible for advising the client on whether the recommended portfolio is suitable to the client’s personal circumstances.
Brooks Macdonald is a trading name of Brooks Macdonald Group plc used by various companies in the Brooks Macdonald group of companies.
Brooks Macdonald Asset Management Limited is authorised and regulated by the Financial Conduct Authority. Registered in England No 3417519. Registered office: 72 Welbeck Street, London W1G 0AY.
More information about the Brooks Macdonald Group can be found at www.brooksmacdonald.com
Contact usIf you require further details, or wish to discuss our services in more detail, please do not hesitate to contact us by telephone, email or via our website.
Administrative enquiriesT: 020 7408 5574E: [email protected]
New business enquiriesNew Business Development teamT: 020 7408 5560E: [email protected]
Our local officesEdinburghHampshireLeamington SpaLondonManchesterTauntonTunbridge WellsYork
