P1 Asset Tracker Investment Approach
P1 Investment Management have a range of six risk rated passive portfolios that are able to meet the majority of client needs, whilst minimising costs. This has been done by ensuring that both the cost of the underlying investments are kept low alongside a competitive P1 discretionary management charge. In a low return environment, cost has become an important factor in determining to absolute return of an investment portfolio.
Portfolios have been constructed with a long term time horizon from the outset, limiting the need for regular intervention. This will minimise transaction fees, as we will simply look to make changes to the portfolio for the purposes of rebalancing or where we feel that the cost of the transaction is outweighed by a saving from ongoing fees. Quarterly portfolio rebalancing enables us to ensure that the portfolio remains appropriate for the targeted risk level.
Portfolios have been built around core holdings of UK equities, global equities and fixed income alongside alternatives providing an element of diversification. P1’s Strategic Asset Allocation should ensure that the portfolios remain appropriate for the targeted risk level. We will not take views on short term market movements or themes, leaving the natural diversification and rebalancing process to maintain the portfolio. The portfolios are not volatility or return targeted.
In addition to cost, there are many elements that are considered before an investment is included in a portfolio. Amongst others, these consist of, tracking error, replication method, bid/offer spread and stock lending. These factors enable us to ensure that whilst an investment may be low cost, it is able to generate the returns expected, with potential risks identified.
Risk-rated Range:
Adventurous, Moderate-Adventurous, Moderate, Cautious-Moderate, Cautious & Conservative
