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Managed Portfolio ServiceLONDONTYNE
ContentsAbout Us ......................................................................................................................................Page 1Asset Classes ...........................................................................................................................Page 2Our Investment Philosophy and Process ........................................................Page 3Portfolio Process and Due Diligence ................................................................... Page 5Asset Allocation ................................................................................................................... Page 6 Our Risk-Rated Portfolios .............................................................................................Page 7Choosing your Portfolio ................................................................................................ Page 8Quick Summary .................................................................................................................. Page 9
Managed Portfolio Service1About UsMPSAt London Tyne, we pride ourselves on our extensive background in capital markets, boasting a combined experience of over 50 years in both the buy-side and sell-side domains. We believe in harnessing the power of global research to drive our success, gaining access to valuable insights and opportunities that shape our strategies. It’s not just about the data and numbers. We also rely on our human touch, blending modern portfolio management techniques with our own judgment and intuition.Our focus is on delivering consistent and reliable results. We pride ourselves on our ability to navigate the complexities of the nancial landscape with a steady hand. We are committed to providing a trusted partnership built on experience, expertise, and an unwavering commitment to help them achieve their nancial goals. London Tyne, together with our partners, presents the Managed Portfolio Service, a comprehensive solution offering a wide range of discretionary actively managed, multi-asset, risk-rated, and diversied portfolios.Irrespective of the size of their portfolio, your client benets from our extensive centralised research and the expertise of our investment team. We excel in allocating to various asset classes, ensuring exceptional value and superior risk-adjusted returns for each investment strategy.Our partners leverage the knowledge and capabilities of London Tyne’s dedicated investment team to conduct thorough research on each investment. We rigorously stress test each model to ensure minimal correlation with major equity or bond markets, enabling investment returns regardless of market direction.
Managed Portfolio Service2Our investment success stems from a disciplined, repeatable, and robust process, guided by a proven philosophy. Adhering to our time-tested approach, we establish a solid foundation for overcoming obstacles that often impede investors from achieving their nancial goals.Our risk-rated model portfolios provide investment across five major asset classes, providing diversification, income, and growth opportunities:Cash or Cash Equivalents – During uncertain times, we may allocate a portion of the portfolios to cash or cash equivalents, offering a safe haven. Therefore, we may hold cash, treasury bills, treasury notes, money markets, deposit certicates, global foreign exchange, etc.Real Assets – Our evaluation encompasses both commodity and property markets, allowing us to take short-term safe-haven positions or long-term positions based on price dynamics or income/growth potential. Alternatives – To reduce volatility and pursue absolute returns, we incorporate specialist managers in sectors such as CTA (Commodity Trading Advisors), systematic approaches, and managed futures. This enables us to generate returns during upwards, downwards and sideways market trends.Fixed Income – Our portfolios have the exibility to invest in major bond markets, encompassing government, corporate, and high-yield bonds. We carefully assess global, country, and sector-specic opportunities within this asset class.Equities – We employ a range of equity strategies, which may include active managers, passive managers and ETFs tracking global indices, as well as geographically specic equity managers. Asset ClassesThrough our thoughtful allocation across these asset classes, we strive to optimise risk-adjusted returns and in attaining your clients’ investment objectives.
Managed Portfolio Service3Our Investment Philosophy and ProcessPortfolio Stress TestingAs part of our risk management framework, we conduct thorough portfolio stress testing. This process involves subjecting our portfolios to various hypothetical and historical scenarios to assess their resilience in adverse market conditions. Identifying potential vulnerabilities and understanding the potential impact on portfolio performance, we proactively manage risk and make informed adjustments when necessary.Macro Academic Research We leverage macroeconomic academic research to enhance our investment decision-making process. Staying abreast of the latest academic insights and research, we gain valuable perspectives on global economic trends, market dynamics, and potential risks. This research-driven approach allows us to make more informed investment choices and better navigate changing market conditions.Maximum Asset Class Exposure We set maximum exposure limits for each asset class within our portfolios. Dening these thresholds, we control the level of risk associated with each asset class. This prudent risk management strategy ensures that our portfolios remain well-diversied and protected against excessive concentration in any single asset class.
Managed Portfolio Service4Value at Risk Value at Risk (VaR) is a quantitative measure that helps us assess the potential loss our portfolios may face within a given condence level and time horizon. We utilise VaR calculations to estimate the risk associated with our portfolios and employ risk mitigation strategies to manage and minimise this risk effectively.Correlation Risk We carefully evaluate correlation risk between different asset classes within our portfolios. Correlation measures the degree to which the price movements of two or more assets are related. Considering correlation risk, we aim to build portfolios that contain assets with diverse performance patterns, reducing the overall sensitivity to any single asset or market factor.During each step of our investment process, we remain vigilant in monitoring and evaluating asset class weightings, portfolio exposures, investment correlations, and performance against relevant benchmarks or peers. This comprehensive risk management approach ensures that we can proactively identify and address potential risks, ultimately safeguarding our investments and striving for optimal risk-adjusted returns.
Managed Portfolio Service5The portfolios will be created in line with the given risk-rating and volatility targets.Portfolio Process and Due DiligenceREVIEW OUR INVESTMENT STRATEGY 15ONGOING MONITORING, REPORTING & REBALANCING FUND IDENTIFICATION 3PORTFOLIO CREATION 4Some of these processes involve:• Quarterly performance reviews and updates• Quarterly interviews with active managers• Consistently reviewing quantitative and qualitative data• Rebalancing through each investment platform on a quarterly basis under normal market conditions• What is our assessment of the global environment? • What are the nancial goals and objectives? • What are the strategic asset allocation targets? The investment universe is extremely vast; thus, we use a broad quantitative lter pertinent to our goals and objectives that omits many funds leaving only those that we believe require a deeper examination.This is a deeper look into the ltered investment universe including: • Operational due diligence 1. Domicile2. Fee arrangements3. Identity of third parties4. Review policies and procedures• Investment due diligence1. Attribution Analysis2. Information Ratio3. Risk-adjusted returns4. Tracking error (ETFs)FILTER2
Managed Portfolio Service6Asset AllocationStrategic - Strategic focuses on longer-term nancial goals, and the investors risk tolerance. It is the most common type of asset allocation. According to research, 90% of returns come from long-term positions. The strategic approach places a set proportion of capital into each asset category. That proportion remains the same, as long as the nancial goals and risk tolerance endure. Tactical - Tactical asset allocation (TAA) represents an evolution of Strategic Asset Allocation (SAA), incorporating additional considerations for short-term economic or market trends. This exibility adds a market-timing component to the portfolio, allowing us to participate in economic conditions more favourable for one asset class than for others. While both approaches involve establishing a baseline asset allocation, tactical asset allocation allows for temporary adjustments based on current conditions. These adjustments are made to deviate from the predetermined asset mix, but the portfolio will eventually revert to its original allocation when circumstances warrant.Asset allocation drives the majority of long-term returns, not security selection. Thus, we employ a comprehensive approach to asset allocation. Our team utilises a quantitative methodology to create strategic asset allocations, which are regularly reviewed and updated. Additionally, we incorporate a qualitative overview into the process.These frequent reviews and adjustments to asset allocations ensure that our portfolios align with their long-term risk proles. Through a single investment solution, our portfolios are well diversied across various asset classes, geographies, and sectors, offering comprehensive exposure.Dynamic - Dynamic asset allocation (DAA) is in between SAA and TAA. It’s an active approach to altering a portfolio’s asset allocation over the medium term. DAA recognises markets will constantly move around from what is considered ‘fair value’. It provides a level of exibility to alter the asset mix of the portfolio to take opportunities as they arise or to help preserve wealth if markets fall. The most notable benet of the dynamic approach to asset allocation is the potential for higher average returns due to the ability to reallocate capital in response to a changing market.
Managed Portfolio Service7Our Risk-Rated PortfoliosCautious Allocation - The investment objective is to generate a return from the income of the portfolio. The Strategy is designed for an investor with a time horizon of more than 3 years, and a lower tolerance for risk that regardless of market conditions would only be comfortable with a lower degree of variation or disruption to capital value or income.Balanced Allocation - The investment objective is to grow the capital value of the portfolio as well as to generate some degree of income. The Strategy is designed for an investor with a time horizon of more than 5 years, and a medium tolerance for risk that can accept moderate variation or disruption to capital value or current income in order to achieve their longer-term objective.Opportunistic Allocation - The investment objective is to grow the capital value of the portfolio. The strategy is designed for an investor with a time horizon of more than 5 years, and a higher tolerance for risk that can accept signicant variation or disruption to capital value or current income in order to achieve their longer-term objective. Bespoke Allocation - Our bespoke service is for investments in excess of £1,000,000. This potentially could be combining an existing fund, share or ETF portfolio and creating a bespoke portfolio to run alongside the existing strategy. Whilst the mandate of the portfolio is bespoke, we will still adhere to the risk prole and invest within controlled volatility targets.
Managed Portfolio Service8London Tyne have created three efcient risk-rated portfolios that cover a wide range of investment objectives and risk proles. Investments within each risk-rated portfolio are actively managed to take advantage of market opportunities as they arise. We will work alongsideyou, to help assess the suitability of this service foryourclients and help them choose the portfolio which best suits their investment objectives, attitude to risk, capacity for loss and time horizon.14%12%10%8%6%4%2%0%2% 4% 6% 8% 10% 12%Investment Returns Investment VolatilityChoosing your Portfolio
Managed Portfolio Service9The Service: Managed Portfolio Service Portfolio Options: Three Risk-Rated Portfolios & a Bespoke Portfolio optionAsset Class: Multiple Asset Classes Currency:GBPManagement Agreement:Advisory MandateInvestment Manager:Sturgeon Ventures LLP trading as London TyneStrategy:Active Management Risk Management:Disciplined with allocation guidelineAccess:Through Life Bonds, Fund Platforms.If you share our investment philosophy or would simply like to nd out more, we invite you to discuss with our portfolio team.Quick SummaryDisclaimer:This document is intended to be communicated solely to persons that fall within the FCA classification of Professional Client. This document is for information and discussion purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase interests in any portfolio managed by Sturgeon Ventures LLP trading as London Tyne. Nothing in this document should be construed as a recommendation, representation of suitability or endorsement of any particular security or investment. Prospective investors should seek their own legal or tax advice. The information contained in this document has been compiled from sources believed to be reliable, but which have not been independently veried. Forward looking information is provided for illustrative purposes only and is not intended to serve as and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a denitive statement of fact or probability.Past performance is not a reliable indicator of future performance. All marketing materials are distributed in the United Kingdom to professional investors by London Tyne, a trading name of Sturgeon Ventures LLP utilised under license. Sturgeon Ventures LLP (FRN: 452811) is authorised and regulated by the Financial Conduct Authority (FCA).
Managed Portfolio Service10LONDONTYNEFor further information please contact usT: +44203 167 4625 | E: matthewh@londontyne.com | markusi@londontyne.com 2nd Floor, Heathmans House, 19 Heathmans Road, London SW6 4TJLondon Tyne is a registered trading name of Sturgeon Ventures LLP (FRN#452811) which is Authorised & Regulated by the Financial Conduct Authority in the United Kingdom.