MODEL PORTFOLIO SERVICE
MODEL PORTFOLIOS TO MEET INDIVIDUALS’ INVESTMENT OBJECTIVES
At Carmignac, designing innovative and tailored solutions to meet our investors’ needs is part of our philosophy. In order to cater to the UK market, we realised the need to work with strategic partners to create a compelling proposition for financial advisors. As a result, we have partnered with SimplyBiz to launch a bespoke range of model portfolios, designed specifically for advisers’ use. We have built a variety of tailored model portfolios to cater to the varying investment objectives and risk appetites of different types of investors – from prudent investors to those willing to take more risk for potentially higher returns. Across our four Carmignac Risk Controlled model portfolios, we have carefully diversified the fund mixes to ensure that active decisions on behalf of our clients are tempered by value-led passive strategies. This way we can maximise stability but not at the expense of hard-fought returns. We believe this is a solution rare to find in the market – not least because each portfolio draws upon respected external funds as well as our own to draw the best results from the market.
Aims to achieve capital growth in excess of the target benchmark (CPI +2% per annum) over the medium to long-term through investment in collective investment funds providing exposure to equities (UK and international), fixed income (government and corporate), property and cash with an overall balance of lower risk and higher risk asset classes.
Aims to achieve capital growth in excess of the target benchmark (CPI +3% per annum) over the medium to long-term through investment in collective investment funds providing exposure to equities (UK and international), fixed income (government and corporate), property and cash with a slight bias overall towards higher risk asset classes.
Aims to achieve capital growth in excess of the target benchmark (CPI +3.5% per annum) over the medium to long-term through investment in collective investment funds providing exposure to equities (UK and international), fixed income (government and corporate), property and cash with an overall bias towards higher risk asset classes.
Aims to achieve capital growth in excess of the target benchmark (CPI +4% per annum) over the medium to long-term through investment in collective investment funds providing exposure to equities (UK and international), fixed income (government and corporate), property and cash with a distinct bias overall towards higher risk asset classes.
In building these, Carmignac has applied an active approach to ensure clients’ objectives are front of mind, while meeting strict pricing constraints – all under independent oversight from risk consulting firm Hymans Robertson who have licensed the models to form part of their range of risk-controlled solutions, and RSMR Portfolio Service as our Discretionary Fund Manager.
SimplyBiz SimplyBiz provides comprehensive, market leading Compliance and Business Support to directly authorised advisers in the Financial Services sector.
RSMR RSMR’s services include fund research, and financial news and markets commentary provided by some of the top fund groups in the UK
Defaqto Defaqto is a leading financial information, ratings and fintech business. Its independent fund and product information helps banks, insurers and fund managers with designing and promoting their propositions.
Hymans Robertson Hymans Robertson provide independent pensions, investments, benefits and risk consulting services, as well as data and technology solutions.
ACTIVE MANAGERS, COMMITTED PARTNERS : THE CARMIGNAC DIFFERENCE
Carmignac is owned both by our employees and the Carmignac family, encouraging a unique blend of diversity and accountability for our actions that stands us in great stead for the future.
Entrepreneurial spirit : We are as entrepreneurial today as we have always been; our team of Fund Managers keeping the freedom and courage to perform independent risk analysis, translate it into strong convictions and implement them.
Human-driven insight : Our collaborative culture of debate, on-the-ground work and in-house research means we will always enhance data analysis with human-driven insight to better manage complexity and evaluate hidden risks.
Active commitment : We are both active managers and active partners, committed to our clients, providing transparency on our investment decisions and always accountable for them.
Carmignac strives to preserve our clients’ assets as much as strengthening them, and we act on this dual mandate on the understanding that the long term matters more than short-term gains. With this in mind, we remain loyal guardians of our clients’ assets, only taking calculated risks when the circumstances show it to be a wise move.
Our founders, Edouard Carmignac and Eric Helderlé, have created the cornerstones to make Carmignac one of Europe’s foremost leaders in asset management. While our brand’s roots are based in France, we have grown to have an international reach – with seven offices throughout Europe and funds distributed across 16 countries.
At Carmignac, we look carefully at each “E”, “S” and “G” credential and only consider firms which, like us, respect and consider these aspects in order to generate good outcomes to create a more sustainable future for us all. ESG integration is in fact carried out at every level of the investment process and is part of our four bespoke and diversified risk-controlled model portfolios. In a world where sustainable investing is continuously evolving, it is more important than ever to build a flexible and credible analytics system into the very core of our investment process. Therefore we have developed a proprietary system to support our analysis and ensure that sustainability is at the very heart of what we do.
This accumulation profile works across active and passive funds, with a slightly increased weighting on UK corporate bonds, and UK and US equities, and a medium- to long-term strategy to outperform the benchmark, which is set at 2% above UK Consumer Price Index. The model combines the best of Carmignac’s own funds with other market-leading funds, and allows for a relatively tight volatility target between 8.1% and 8.5%, with maximum and minimum limits coming in at 10% and 6.5% respectively.
This accumulation profile follows a similar, heavily-diversified base characteristic, but with a higher performance target at 3% above the UK Consumer Price Index. Its active-passive split is defined by a marginally increased weighing towards equities in Asia and the emerging markets, while the remaining investments are finely balanced across the spread. Portfolio 5’s volatility target is set higher, between 9.8% and 10.2% with a maximum and minimum tolerance sitting between 11.8% and 8.3%.
This accumulation profile provides a balanced approach to active versus passive, but edges further in its weighting towards US and UK equities, unlike the UK bonds weighting in Portfolio 4. Yet more allowance is given for volatility here. The ideal target is set at between 11.6% and 12%, with a maximum and minimum limit sitting between 13.6% and 10%.
This accumulation profile is defined by a much bolder weighting towards US equities and yet it retains a balanced split between active and passive fund to ensure longer term stability. The Developed Pacific Region (ex-Japan) and Emerging Market equities also gain increased focus in this portfolio, though they are carefully balanced by passive funds in developed markets. There is a relatively higher allowance still in Portfolio 7 for volatility targets – sitting between 13.4% and 13.8%. The maximum and minimum volatility limits are between 15.4% and 11.8% – again increasing investor options in risk-reward.
Carmignac’s Active Funds within Models
Contact the team members
David BEACHAM Business Development Director
This is a marketing communication. This material was prepared by Carmignac Gestion and/or Carmignac Gestion Luxembourg and is being distributed in the UK by Carmignac Gestion Luxembourg UK Branch (Registered in England and Wales with number FC031103, CSSF agreement of 10/06/2013). The information contained in this document is provided to professional advisors for information purposes only and must not be communicated to any other person. It does not constitute personalised investment advice and must not be treated as a recommendation or an offer or solicitation for investment. The Discretionary Fund Manager of the model portfolio is RSMR Portfolio Services Limited, a limited company registered in England and Wales under Company number 07137872. Registered office at Number 20, Ryefield Business Park, Belton Road, Silsden BD20 0EE. RSMR Portfolio Services Limited is authorised and regulated by the Financial Conduct Authority under number 788854. © RSMR 2021. RSMR is a registered Trademark. Carmignac Gestion Luxembourg is the asset allocation adviser of RSMR for the construction of the model portfolio and does not have investment discretion over, or place trade orders for, any portfolio or account derived from this information. Investing involves risk. The value of investments and any income from them can fall as well as rise, is not guaranteed and your clients may get back less than they invest. The market value of, and the income derived from, the model portfolio may fluctuate in accordance with the values of the investments held by the portfolio, exchange rates between sterling and the currencies in which underlying investments are denominated, and other market conditions. Costs and charges are detailed in the most recent factsheet for each Model Portfolio. We cannot guarantee Defaqto risk ratings will remain static. The model portfolio is mapped against a selection of third-party risk profiling tools to assist advisers as part of suitability assessments for clients. Such tools are however only one aspect of an adviser’s suitability process and other such as the clients’ investment term/horizon and knowledge and experience should also be considered.