Investment Portfolios

Risk Rated Investment Portfolios

Asset Allocation

Asset allocation is the process of dividing your investment between different assets, such as cash, bonds, equities (shares in companies) and property. This practice helps to spread risk through diversification – in other words, by not putting all your eggs in one basket. 

To benefit from diversification, you need to invest in assets that behave differently from each other. Each asset type has a relationship with others – some have very little or no relation to each other (known as a low correlation), whereas others are inversely connected – meaning that they move in opposite ways to each other (called a negative correlation).

Diversifying your assets helps spread risk because you’re reducing the likely potential for losses. If you had all of your money invested in one asset, sector or region, and it began to drop in value, your investments would suffer.

By investing in assets that aren’t related to each other, while one part of your investment portfolio is falling in value, the others aren’t going the same way. Some assets will actually go up in value when others decrease.

As Imperius Wealth Ltd is an appointed representative of Navigate Independent Financial Advisors LLP, we utilise their Centralised Investment Proposition.


Navigate Asset Allocation Models

Navigate use asset allocation models which link to your risk score which in turn links to a risk rated portfolio which meets your tolerance and ability to accept risk.

Navigate's asset allocation models are driven by Moody’s Analytics capital market assumptions. They are a global leading provider of investment research and analytics for debt capital markets and risk management professionals.


Risk Assessment

Establishing your Risk Tolerance or Profile

We will establish your risk tolerance by considering:

  • Your goals and objectives
  • Your investment time horizon
  • Your investment experience
  • Your willingness and ability to accept some risk
  • And by completion of a risk analysis questionnaire

The risk score then links to a risk rated portfolio.



Investment Term (Years)
5 - 10 10 - 15 15 Plus For life

 

Risk Level

Navigate Portfolio

Growth Assets %

Sensitivity to Volatility %

ATR Best Fit Range

1

n/a

0

0

n/a

2

Very Cautious

22

0 – 10

0 to 38

3

Cautious

30

10 – 20

39 to 45

3

Cautious Balanced

43

10 – 20

46 to 52

4

Balanced

55

10 – 20

53 to 59

5

Balanced Growth

67

20 – 33

60 to 67

6

Growth

79

20 – 33

68 to 74

6

Adventurous

87

33 – 50

75 to 81

7

Very Adventurous

96

50+

82 to 100

 

Fund Selection



Navigate's risk rated portfolios contain either 22 or 23 different investment funds depending on whether an emerging market equity fund is included (only in the aggressive and speculative portfolios).

Further diversification is provided by spread of market capitalisation: 

Navigate minimise stock overlap by avoiding using two funds with similar holdings.


Portfolio Maintenance

The funds are selected by our independent investment committee after completing extensive research using the latest technology and investment management software.

Navigate's investment committee has 45 years combined experience in portfolio construction.

The committee meets quarterly to review and assess the last quarters fund performance.

Funds have to meet strict criteria for inclusion in the portfolios which include:

  • Short, medium and long term track record
  • Volatility and risk adjusted returns

If the strict criteria is not met a fund is replaced with an alternative which meets the fund selection criteria.

Your portfolio will be re-balanced into the latest set of funds at your annual review.

This has the effect of keeping you invested in top performing consistent funds and aligned to your tolerance for risk.


Navigate's Risk Rated Portfolios

Navigate have built a range of investment portfolios – a menu of different asset allocations that cater for cautious investors who don’t like the idea of losing much money, through to speculative investors who are happy taking on greater risk for a much higher potential return.

Navigate believe this can help you make sensible and responsible choices with your investment portfolio, and offers you a solid foundation from which to start your investment journey.


Investment Platforms

Navigate operate risk rated portfolios from investment platforms.

An investment platform enables advisers to select and purchase investments from a wide range of solutions. The platforms Navigate use provide access to a large range of investment solutions normally in excess of 3,000 different investment funds.

These investments may sit within wrappers that enjoy certain tax advantages and typically include ISAs, SIPPs, Personal Pensions and Investment Bonds. Assets not held in a specific tax wrapper are held within a general investment account.

Holding all your investments in one place makes monitoring much easier and provides access to a very wide range of investment solutions with free movement between the funds, enabling your adviser to maximise the potential of your investment.

Navigate select the right platform for you on a bespoke basis usually after taking into consideration:

  • Cost of the platform
  • Required functionality
  • Investment requirements

FE Risk Score

The FE Risk score compares the risk score of the investment compared to the FTSE 100 Index (Top 100 companies in the UK) which has a risk score of 100.

FE AFI Index

The FE Adviser Fund Index (FE AFI) is made up of the recommended portfolios of a panel of leading UK financial advisers. Based entirely on the funds actually recommended to clients, the FE AFI Aggressive, Balanced, Cautious portfolios carry real-life credibility, and provide insight in terms of the benefits of holding top quality funds. The current constituents of the FE AFI Index are:

  • AFH Independent Financial Services Ltd
  • Beckitt Financial Sevices
  • Chelsea Financial Services
  • City Asset Management
  • Dart Capital Ltd
  • Dennehy Weller & Co Ltd
  • Equilibrium Asset Management LLP
  • Fiducia Wealth Management
  • Gemmell Financial Services Ltd
  • Holden & Partners
  • Killik & Co
  • Minerva Fund Managers Ltd
  • Murdoch Asset Management
  • Rowan Dartington
  • Saunderson House
  • Save & Invest (Financial Planning) Limited
  • The Share Centre
  • Whinchat Financial Planning Ltd
  • Whitechurch Securities Ltd

Finally

Navigate have great belief in their investment solution, as do their clients who have experience investing in these portfolios.

The following charts include:

  • The FE Risk Score of each portfolio
  • 5 Year performance of each portfolio
  • Comparisons against sector benchmarks

Downloads

  1. FE Risk Score Chart - Risk Rated Portfolio’s

  2. FE Performance Chart - Risk Rated Portfolio’s

  3. FE Risk Score Chart - Risk Rated Portfolio’s v Benchmarks

  4. FE Performance Chart – Navigate Cautious Balanced v AFI Cautious Index

  5. FE Performance Chart – Navigate Balanced Growth v AFI Balanced Index

  6. FE Performance Chart – Navigate Adventurous v AFI Aggressive Index