Walker Crips Investment Management has today (21 September) launched a managed portfolio service for UK financial advisers and their clients.
Named Alpha: r2, the new range of portfolios will be closely aligned to the industry-standard Wealth Management Association benchmarks, covering five risk/return profiles and available in collectives-only, or in direct equities and bonds, and collectives’ variants.
In addition to the standard models aligned to the WMA’s five risk categories, it also offers two higher income options and an ethical model, managed by Gary Waite and Andrew Morgan.
Drawing on their backgrounds in institutional fund management, the portfolio managers’ approach to risk encompasses three parts: understanding drivers of past performance to shape future returns; ensuring value at risk is deliberate and diversified; and stress-testing portfolios to uncover hidden risks.
Mr Waite, a portfolio manager of Walker Crips Investment Management, explained these portfolios help solve the problems financial advisers are experiencing post Retail Distribution Review.
He said: “Advisers and their clients want confidence and certainty, not undue risk. With Alpha: r2, advisers will know exactly what to expect in terms of asset allocation, stock selection and performance as each model is closely correlated to its respective benchmark, with active management providing the opportunity for alpha.
Commenting specifically on the ethical portfolio, Mr Waite added that there is a growing demand for such strategies, which are naturally somewhat insulated from the drivers of volatility seen in the market recently, such as commodities and emerging markets.
“We operate a pragmatic ‘best-in-class’ approach, seeking to invest in companies that demonstrate a commitment to sustainability and the highest standards of corporate governance.”
peter.walker@ft.com
