Unbiased Portfolio Management
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Investment Process

Our aim is to manage your clients' investments to provide consistent gains with low volatility. To do this, we use a diversified range of sectors and active management.

As unbiased portfolio managers, we have not created our own funds, and we do not invest directly into shares and cannot therefore be charged with bias or churn. We use a rigorous, disciplined structured framework to choose the most appropriate collective funds on each platform.

We use both quantitative and qualitative methodologies, and a combination of information gathered from rating agencies and peer reviews, coupled with knowledge gained from fund manager meetings. Typically, we meet with over 500 fund managers every year to monitor their performance. Our aim is to identify the fund managers that offer the best potential in each sector.

To spread risk within each sector, we select from a range of different fund manager styles, e.g. value or growth. As each fund management group tends to pool research, we also spread risk across sectors by using a number of fund management groups. The overall aim is to create a diverse, best-of-breed, blended portfolio per sector.

Using a sporting analogy, we are trying to select a national squad of the best players from England, Scotland, Ireland and Wales.

We blend up to 27 sectors using modern portfolio theory to identify the efficient frontier. We have performed extensive research to identify correlations between each sector in order to create 'core and satellite' model-based portfolios. To diversify fund manager risk, we invest into approximately 40 rated household-name funds. Based on our own experience, we have created 6 model portfolios to cater for your clients' differing needs.

For performance-fee purposes we can use a variety of benchmarks, such as absolute return or an ABI, IMA, ARC, WMA (APCIMS) or FTSE benchmark. We have found that most clients prefer to use the BoE base rate or the FTSE All-Share as they can find details of these in the newspapers

Investment Committee

The committee meets monthly to discuss potential macro issues for each of the 27 sectors in order to proactively prepare portfolios for headwinds.

Active Tactical Asset Allocation

We perform daily inter-market technical analysis on each of the sectors to identify if a trend is changing. We use the mean-reversion theory; i.e. when sectors become overbought and sentiment changes, we rotate the allocation into more defensive sectors. Also, if a sector breaks through a technical support level, we may take profits and switch into the safety of cash or fixed income.

Contact: +44 (0)20 8715 4004     37 Dorset Road, London, SW19 3EZ
Unbiased Portfolio Management is the trading name of Unbiased Financial Group LLP, which is authorised and regulated by the Financial Conduct Authority (FCA) 726137. Legal Information Terms and Conditions.