‘Consistency rules’ as PortfolioMetrix celebrates UK three-year anniversary

Discretionary investment manager PortfolioMetrix is celebrating three years of portfolio performance that has consistently delivered risk controlled outcomes for clients.

“What we achieve with our investment strategy is really tight risk control that has proven to be in line with our client’s expectations. Our goal is to take the casino out of investing and our investment team has proved they can deliver,” says UK CEO Mike Roberts.

Analysis of the largest 20 open Balanced funds* with a three-year track record (data via Financial Express) showed only a couple of funds had a slightly higher return than PortfolioMetrix for the equivalent level of risk, with the majority falling short. Over a one and two-year period none of the Balanced funds performed as well as PortfolioMetrix. The funds analysed account for funds in excess of £41 billion of client assets.

“Considering the specification for our analysis was Balanced funds, the spread of risk amongst the competition is considerable, with the majority actually exceeding what we would consider an acceptable level for balanced market exposure,” says Mike Roberts.

Over the three years, UK performance across the PortfolioMetrix range has achieved reliable risk/return separation. Consistency across the range of portfolios is important to meet suitability requirements, with the FCA and FOS both actively looking at the issue of investment suitability.

The results over the three years since PortfolioMetrix launched in the UK reflect those that have been achieved over five years in the firm’s sister company in South Africa.

“Our team designed the proposition starting with a blank piece of paper and ignored the traditional principals that private client investment management have adopted” says Mike Roberts. “It’s designed to give investors outcomes linked to their capacity for loss and risk appetite, elements that are determined and documented using our proprietary Wealth Explorer tools. These use behavioural and psychological profiling that allows both the adviser and their clients insights that ease the mandate creation process and create better all-round understanding of what to expect.”

Unlike traditional risk-rated funds and model portfolios, PortfolioMetrix gives advisers the ability to customise and fine tune its portfolios to match each client’s investment preferences and risk appetite. This means advisers can deliver an investment service that is customised to each client while benefiting from the fast and efficient suite of tools provided by PortfolioMetrix. Unlike many discretionary investment managers operating through platforms, PortfolioMetrix readily accept that the investment risk sits with them, freeing advisers from this potential burden.

“Over the past three years we have been refining and developing our offering, working closely with our partner adviser firms. It’s gratifying to see our strategy is paying off and I’m looking forward to continuing to build on this success in the future,” says Mike Roberts.


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