Responsible Asset Tracker Investment Approach
P1 Investment Management have a range of five responsible 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.
By selecting passive investments from across the market, P1 are able to use the most appropriate and lowest cost investments within our portfolios. All funds must meet the P1 Fossil divestment requirement of not investing in companies that are predominately involved in the production of coal, oil and gas. Funds will be selected from those within the Passive fund universe that impose additional screens and criteria to their indices, addressing issues across Environmental, Social and Governance (ESG). We will ensure that the fund managers are signed up to the UN PRI, UN Global Compact and have adopted 2020 UK Stewardship Code, meeting the minimum standards for ESG.
Risk-rated Range:
Adventurous, Moderate-Adventurous, Moderate, Cautious-Moderate & Cautious
