Expat Investments

In addition to offering investment into a wide range of funds managed by internationally renowned management companies we provide a bespoke investment service. Through this service we manage your portfolio as described below.

LOW RISK PORTFOLIO

The aim is to provide currency specific, diverse investment portfolios combining security, low volatility and targeted steady growth over the medium to long term (6 – 9 years).

Diversity is achieved using the following factors:

• Asset allocation models
• Fund of Fund vehicles
• Diverse investments styles and processes

Security is achieved using the following:

• Funds protected by guaranteed notes
• Profit lock-in to cash
• Dividend payments
• Portfolio rebalancing
• Funds employing active downside risk management
• Prudent asset allocation

Volatility is reduced by:

• Asset diversification
• Geographic diversification
• Minimal direct equity exposure
• Minimal exposure to traditionally high volatility markets
• Style diversification

Growth is achieved by:

• Core book of low growth low volatility funds
• Exposure to all asset classes and sectors
• Exploitation of downside risk models
• Use of fund of funds with active position management

The asset classes are:

Cash. Portfolios need to hold an element of cash to pay charges. Equally, although subject to the depreciating effects of inflation and possible exchange rate fluctuations, cash has a useful stabilizing effect on any portfolio.

Bonds are loans made by an investor to an institution. The level of risk involved in a bond will be dictated by the stability of the issuer of the bond and any collateral attached to the bond. This can range from a major government to a lower grade company. Bonds add stability to a portfolio as they are issued for a specific term with a specific coupon (annual interest rate). The majority of our bond exposure is achieved through the Global Asset Class although we may add more. In the event of a poor performance outlook for bond markets (e.g. rising interest rates) we may use alternative investments that exhibit similar volatility curves.

Property is traditionally a long-term investment offering steady growth. The main downside is a lack of liquidity. Our property exposure is focused on commercial low risk property funds that hold, for example, large offices on long-term leases to government departments with upward only rent reviews. Property adds stability to the portfolio.

Global . This is the most diverse asset class. The funds are invested in a diverse range of assets. This asset class provides further diversification and growth.

Equities are volatile. However, anyone who has held a long-term portfolio will know that, despite sharp volatility, over the medium to long term equities will out perform most other asset classes. Investment in equities should be as diversified as possible – spread across sectors, styles, and geographic areas. Here we concentrate on growth linked to downside risk management. In addition, should the opportunity arise, we make an investment in a specific area or market for added growth.

Hedge Funds are now accepted as an essential part of any portfolio as they have no correlation with other asset classes and aim to make an absolute return. Following our theme we mainly recommend Fund of Hedge Funds. The underlying assets can vary greatly within hedge funds and we focus on the more transparent funds with history. In addition we blend funds focused on bonds and fixed interest with those of a higher risk profile.

Other . We reserve this class for unusual opportunities that may present themselves in the short term and for uncategorized assets such as commodities.

Current Asset Allocation

 

Recent Performance

We measure our funds on risk adjusted returns and Value at risk (VAR). Below is a typical example of one of the funds currently in our euro portfolio.

Based on 36 Months to end June, 2006
( GBP, Bid-Bid -     Dividends Reinvested)

Riskometers