How we select investments for portfolios
Our Self Select Portfolios consist of diversified range of funds that we believe helps achieve optimum results based on a given risk profile. These portfolios only include investment funds, particularly actively managed funds, thus ETFs or shares are not considered for selection in the portfolios.
We perform thorough due diligence on each fund we select as part of the portfolio. As a starting point, we review all ethical investments based on a number of important factors. Only after rigorously considering these factors do we feature them in a portfolio we believe should serve you well as an investor.
As part of our due diligence on funds, broadly, we look at a number of factors, including the following
- Fund objectives
- Fund investment strategy, holdings and investment allocation
- Investment performance
- Track record
- Fund manager and investment team
- Research and investment selection process
- Liquidity and risk management
- Sharia and ethical compliance and monitoring
- Fund charges
- Impact of external factors including economic environment or compliance on fund strategy
Moreover, we don’t simply rely on research or information supplied by the fund provider. We like to question the management team and meet with them where appropriate to ensure we have a clear understand of the fund and whether it can add value for our clients, along with how best the fund fits within the overall portfolio we create for each risk profile.
Each portfolio aims to provide the best possible return for the risk targeted. Generally speaking, the more risk you take the greater the potential return but the greater the potential loss.