Domestic Balanced

Evidence Based Investing

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Portfolio Characteristics

Inception Date – March 2015
Currency – GBP
Dividend Yield – 2.97%
Daily Liquidity

Investment Approach

Evidence Based Investing is our core investment philosophy, which means that rather than relying on short-term forecasting, we draw information about expected returns from the market itself. Letting markets do what they do best, drive information into prices, frees us up to spend time where we believe we have an advantage, namely in how we interpret the research and how we design and manage portfolios. It means we take a more systematic approach to investing, an approach we can implement consistently, and investors can understand and stick with, even in challenging market environments.

Rigorous, unbiased research has yielded six expected return premia for patient investors, which are equity premium, small cap premium, value premium, profitability premium, term premium and credit premium. We then select the most suitable securities to create the desired market exposure in the most cost and tax efficient way to capture these premiums.

We manage investment risks by using the combined powers of diversification and asset allocation. Diversification is a way to dampen risks. While some risks can be diversified away, market risk however remains and is expected to enhance your long-term returns if you build them into your total portfolio, and if you stay the course with them over time.

Asset allocation is determined by the investor’s specific goals and times frames and guided by his or her risk tolerance and capacity.

Strategy Description

Our Domestic Global Strategy is optimized for U.K. investors widely diversified investing in ETFs and market trackers, with the target to generate at least global capital market returns.

The international portfolio does not take large bets in regional allocation compared to the MSCI All Country World Index. It does hedge part of the foreign currency exposure back to Pound Sterling.

The fixed income part is diversified over UK gilts and corporate bonds and will adjust the average duration over the course of an economic cycle.

This strategy is suitable for long-term investors with a balanced risk profile that want to capture global market returns.

Portfolio Performance

YTD 2020 2019 2018 2017 2016 2015
Portfolio-1.05%-7.85%18.06%-9.44%8.66%9.87%-3.14%
as of 29/01/2021

Annualised Return

Standard Deviation

Sharpe Ratio

Portfolio2.04%12.07%0.17%

Allocation

America 5.61%

Greater Europe 93.01%

Developed Asia 0.75%

Emerging Asia 0.50%

Central/Latin America 0.13%

Sector

Financials

23.52%

Industrials

10.48%

Consumer Discretinoary

11.51%

Real Estate

3.79%

Consumer Staples

14.97%

Materials

5.54%

Healthcare

7.83%

Utilities

5.19%

Technology

5.43%

Energy

1.65%

Telecommunication

10.09%

Sector

Financials

23.52%

Industrials

10.48%

Consumer Discretinoary

11.51%

Real Estate

3.79%

Consumer Staples

14.97%

Materials

5.54%

Healthcare

7.83%

Utilities

5.19%

Technology

5.43%

Energy

1.65%

Telecommunication

10.09%

Sector

Investment Grade

null

High Yield

0.00%

Other

0.00%

Financials

23.52%

Industrials

10.48%

Consumer Discretionary

11.51%

Real Estate

3.79%

Consumer Staples

14.97%

Materials

5.54%

Healthcare

7.83%

Utilites

5.19%

Technology

5.43%

Energy

1.65%

Communication

10.09%

Sector

Diversified Reits

null

Office Reits

0.00%

Retail Reits

0.00%

Hotel & Resort Reits

0.00%

Industrial Reits

0.00%

Financials

23.52%

Industrials

10.48%

Consumer Discretionary

11.51%

Real Estate

3.79%

Consumer Staples

14.97%

Materials

5.54%

Healthcare

7.83%

Utilites

5.19%

Technology

5.43%

Energy

1.65%

Communication

10.09%

Top Holdings

StockWeight

UBS Irl ETF plc - MSCI United Kingdom IMI Socially Responsible UCITS ETF37.15%

iShares Core GBP Corp Bond UCITS ETF20.67%

iShares UK Dividend UCITS ETF14.82%

iShares MSCI UK Small Cap UCITS ETF10.80%

JPMorgan GBP Ultra-Short Income UCITS ETF10.18%

iShares Global Clean Energy UCITS ETF3.23%

iShares Healthcare Innovation UCITS ETF2.22%

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