This is only half the story though, and no different to what many Multi Asset Managers are doing day to day. Therefore in addition to cyclically adjusting the portfolio another aim of OBI is to try and avoid the really bad years or negative significant market events. As a result the average annualised return (mean) increases. In addition the range of returns, on an annualised basis, is narrowed so for example instead of being between -20% to + 30%, it will be between -10% and + 25%.
Internally OCM call the effect of the decisions they make “Shift & Squeeze”; i.e. “Shift the Mean and Squeeze the Range”. The benefit to clients is that historically they have significantly reduced the volatility and enhanced the returns. By focussing on the outcome and capital protection primarily, rather than trying to beat the market, they have historically provided more stable returns when compared to many of their competitors.
Jason Stather-Lodge, Chief Investment Officer and architect of this theory, said:
“What we do differently is that we believe all client portfolios should be cyclically adjusted into assets that are aligned, in our Investment Committee’s opinion, to provide the greatest likelihood of adding a positive contribution in the coming quarter. It is a team operation that is highly conviction led and focussed on providing the clients outcome first and protecting against significant market events second, and then beating benchmarks. This makes the proposition extremely compliant and in line with FCA mandate as regards to ensuring the client is in the rights assets at the right time.”
The key, according to OCM, is to limit the surprises and capture as much of the upside as possible, with a focus on the intended outcome, and as such, smooth the returns.
Who is it for?
As a stand alone DFM solution, developed by an IFA for IFA’s, it is part of a holistic approach that connects the benefits of cash flow modelling with an investment solution.
The DFM solution is embedded into the partner firm to seamlessly connect that firms’ advisory processes to the asset management service and is extremely regulatory friendly and TCF focussed. Ensuring that a firm benefits fully from the economy of scale, the solution and underlying service delivery.
The benefit of the solution is that it is tailored to deliver the clients agreed objectives as the primary focus, as agreed by any modern financial planner.
OCM has offices in London, Milton Keynes and Northampton. If you would like to understand more or have an in-formal discussion please ring on
0845 338 1971 or alternatively go to