Tam AM model portfolios outperform in year to date

Discretionary investment manager Tam Asset Management has outperformed benchmarks for all four of its Tam Focus model portfolios in the year so far.

Each of the four model portfolios outpaced their respective benchmarks by at least 7.7 per cent, with the best comparative performance coming from the ‘growth’ portfolio which grew 15.4 per cent compared to a benchmark of 6.1 per cent.

Data from Asset Risk Consultants has consistently shown recent performance of discretionary managers to be below that of open-ended fund peers. Arc data is based on the performance figures for bespoke portfolios sent to the firm by 53 participating wealth managers.

Earlier this month latest figures for the third quarter of 2013 showed that only defensive portfolios outperformed their open-ended fund peers in the three months to September. The biggest outperformance coming from funds within the IMA Mixed Investment 40-85% Shares sector, which beat the Arc Sterling Steady Growth PCI by 0.7 percentage points.

In February an Arc report found that an investor who had passively followed the FTSE Apcims indices, which are designed as a strategic benchmark for wealth management portfolios, would have ended up in the top 10 per cent of discretionary managers in terms of performance in the past three years.

Christian Holland, senior investment officer at Tam, said: “We started the year with an overweight bias towards equities and a broadly negative view on gilts. This has been vindicated but required patience and conviction through a year in which markets have been prone to setbacks relating to geo-politics or central bank action.

“We repeatedly told clients that we would use these setbacks to add to equities and, whilst we aim to invest for the long term, the reality is that this kind of market demands that you adapt your investment behaviour towards being more tactical and being prepared to make short term changes as opportunities present themselves.”

The four portfolios are available through Tam’s proprietary platform for investors with a minimum of £10,000 to invest and an annual management fee of 0.25 per cent.