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The Unizone Investment Process
Correct asset allocation is vital when managing risk and is an important part of our investment process. Whilst equities are deemed to be the best asset class to generate higher long term returns, investors are likely to suffer high levels of short term volatility from time to time. To reduce risk and generate consistent returns therefore, particularly for investors near or at retirement, we recommend investment in a range of asset classes.
To add further value we seek fund managers that invest in a range of assets within their own sector to diversify risk further. Assets within the same sector can still be uncorrelated. A fully diversified portfolio would include UK equities, overseas equities, UK government bonds, overseas government bonds, investment grade bonds, sub investment grade bonds, index linked gilts, UK commercial property, overseas property, commodities including gold and currency.
Finally, additional value is added by continuously reviewing the fund managers we select for clients. Funds are reviewed on a quarterly basis to ensure we are informed of new fund launches and that our existing recommendations continue to meet our strict selection process: -
- a proven track record with the fund currently managed
- renowned for their excellent stock picking skills
- have some flexibility to switch asset classes when necessary
- are not taking excessive risks
When a fund no longer meets our criteria clients are advised accordingly. We will require your authority to update your portfolio in line with any recommendations to switch.
The investment monitoring only applies to products (including pensions) which provide access to external fund managers.