Portfolio Management

Introducing the Hartey Wealth Management Portfolio Management

What does it do?

The Portfolio Management Service provides active investment management for clients. Our independent and experienced in house team of portfolio managers work with you on a personal level, towards understanding and achieving your long-term financial goals, based on your investment objectives and attitude to risk.

Who is it for?

Today’s financial markets can move very quickly and the words or actions of a company, government or even an individual can impact on investment transaction. Our investment service can act quickly on your behalf; through the use of online technology we can change things at the touch of a button.

How does it work?

Tailoring collective investment funds, our investment solution offers a range of ten multi-asset risk-mapped portfolios, linked to four distinct investment themes. Whether this is maximising income, achieving long-term capital growth, a mixture of income and growth, or ethical investing. Each portfolio aims to deliver on its stated investment objectives whilst remaining managed firmly within its defined risk parameters, ranging from 1- safeguard to 10 – speculative.

Is our service right for you?

Because of the wide variety of risk-rated portfolios available, the Hartey Wealth Management Portfolio is suitable for a broad range of clients. However, it is not suitable for everyone.

If you prefer to have no risk and be based in cash, or have specific requirements not met by our portfolio range and/or a complex tax situation which requires more consideration of the buying and selling of  investments, then the service may not be suitable for you. Your Hartey financial adviser will help you decide whether the wealth management service is right for you.

A ten-strong suite of risk-rated portfolios

The Hartey Wealth Management Portfolio Management service — provides portfolios that invest in both passive and actively managed collective investment funds, and it also provides clients with access to a broad range of different asset types to ensure appropriate levels of diversity within each portfolio as a means to effectively manage risk.

By combining cost-efficient passive funds with actively managed funds, we aim to provide you with the best of both worlds. The blend between passive and actively managed funds held within the portfolios will be controlled by the Portfolio Management Team.

Passive funds provide strategic exposure to specific asset classes. Investment in these areas will be selected by the Portfolio Managers. Actively managed funds will require in-depth research and analysis, carried out by the Portfolio Managers, and investment in these areas will be on a tactical basis.

This combination of funds will provide you with   a cost-efficient, actively managed investment portfolio suitable for your particular needs.

Strict equity limits will be imposed according to your portfolio’s risk profile. For example, a cautious portfolio profile will typically hold 30% in equity funds. A balanced portfolio will hold 50% in equity funds, whilst an adventurous portfolio can invest 70% in equity funds.

Our Bespoke Service

When you invest via the Hartey Wealth Management Portfolio Management, we will manage your portfolio from the following strategies according to your risk-and-return profile, which will be tailored to your needs.

Higher income

By taking this approach, we aim to optimise a high level of income, whilst preserving capital, as well as providing moderate growth over the long term. We structure the portfolio and asset allocation according to your risk profile.

Income and growth

With these strategies, we prioritise a balanced investment objective, with the goal of offering you an attractive total return through generating income, plus the potential for capital growth.

Capital growth

Our capital growth strategies focus on long-term capital growth; any income generated is a secondary consideration. We will achieve this by investing in a diversified portfolio across different asset classes. Asset allocation is dependent on your risk profile.

Ethical

Our ethical strategies aim to give you an investment approach that considers a range of socially responsible   criteria. Green and ethical investments look at the wider impact of investing in society and the environment when seeking financial returns.

They take into account social or environmental considerations in addition to financial criteria, products that have positive benefits for the environment and society and also support your values and morals. 

The investments in this type of portfolio are diversified across a range of asset classes according to your risk profile and the availability of ethical investments.

Ethical —Tends to follow a moral-based screening process that excludes industries such as tobacco, gambling and armaments, while seeking companies that contribute positively to the environment and society.

SRI — Sustainable and responsible investment seeks to invest in the most sustainable companies, i.e. those that manage their environmental, social and community impacts for the greater good of society.

Impact — Invests in companies that aim to achieve a measurable positive social or environmental impact in addition to a financial return.

Green — Invests in companies involved in improving the environment.

Environmental, social and governance (ESG) — Refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business. These criteria help to better determine the future financial performance of companies (return and risk).

Certain market  sectors  or  asset   classes   may  be excluded from investment due to ethical restrictions — for example, tobacco, mining, oil, gas and alcohol. This can affect returns both positively and negatively. It can also cause considerable variation against standard benchmarks.

Risk and return Your Hartey Wealth Management financial adviser will help you decide what risk/reward profile best suits your circumstances and attitude.

Hartey Wealth Management invests in a diversified mix of different classes across all of our portfolios.

Where will your portfolio be invested?

Investment performance is largely determined by the types of assets in which the portfolio is invested.  Asset classes can be very diverse and consequently their levels of risk and potential performance can vary considerably. Diversification is the way that we spread risk by investing in different asset classes, countries, investment styles, fund managers and financial institutions.

Stock market funds

In the long term, the stock market has produced the highest return (albeit the past is not necessarily a   guide to the future). In the short term, equities make a risky investment due to their volatility. They have the greatest potential for growth and may offer rising income via dividends. If you are willing to invest for five years or more, you can potentially make long-term gains.

Fixed interest

Fixed-interest investments provide a rate of return that is set at the time of investment. Government bonds and corporate bonds tend to be the most popular fixed-interest investments.  Their risk/return profile is somewhere between lower-risk cash-based investments and more volatile stock market investments.

Alternative funds

Private equity, hedge funds, infrastructure, managed futures, real estate, absolute return and derivatives contracts are examples of the many types of alternative investments. It is important to note that the risk/return profiles of the investments in this category can vary significantly.

Commodity funds

Commodity funds are considered a higher-risk investment due to their volatility. Typically, such funds aim to track the underlying price of various commodities and natural resources. Access to these investments is usually obtained indirectly via manged funds or exchange-traded products (ETPs).

Ethical investments

These investments can be the means to meet your financial objectives if you want to take into consideration your concerns about social, environmental, ethical and corporate-governance issues.

Cash A low-risk option, in which the chances of losing money are small. Cash and money-market funds tend to be used tactically to reduce risk in cautious and balanced portfolios. However, we only keep a small amount here due to the impact of inflation.

Commercial property

Property funds are similar to other “collective investment” funds in many ways except that they invest in a portfolio of properties rather than a portfolio of equities. Other funds invest “indirectly”, meaning that instead of buying properties, they buy shares in property companies or other property funds. Both these types of fund are usually unit-linked.

IMPORTANT – returns from stock market, bond, property and alternative funds are not fixed and can incur losses of capital and fluctuating income.

A proactive approach informed by research and analysis

The service you can expect

The financial news headlines show us on a daily basis that the economic, political and market environment is always changing. Our approach to this constant flux is to be proactive rather than reactive. In order to do this, we invest much of our time in research and analysis, which informs how we manage your portfolio assets. Based on your portfolio’s investment strategy, we will respond to market changes, when appropriate, by implementing changes to the asset allocation according to our current views.

An experienced portfolio management team

Portfolio Management is run by our Head of Portfolio Management Will McBride and supported by a dedicated team of investment professionals. The team has responsibility for constructing and managing our range of investment portfolios, ensuring that each portfolio keeps to its designed risk profile and fulfils its investment objective. To this end, the team continuously reviews and analyses market conditions to determine how portfolio investments are allocated. The quality of the investments utilised is also the subject of ongoing scrutiny. Enhanced by our ability to select from the whole of the market, and through close interaction with the leading lights of the retail investment sector, our aim is to ensure that the investment components of each portfolio are always best-in-class.

Interested in a second opinion on your investment portfolio?

If you have any questions about your investments, pensions or plans, contact us today. To learn more about The Second Opinion Service, visit the service’s dedicated website.

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