Our Approach To Investing

Investment Objective Review And Objective Setting

It is key to ensure that, from the outset, every client has a realistic idea as to what they can expect from TAM Europe. Therefore, before signing up to our services the client must ensure that they have established an accurate investment objective with their intermediary. This will form the cornerstone of how we manage their assets. However, we understand that as time goes on, clients' investment horizons may change and if they do, we recommend that they inform their financial adviser immediately in order to re-evaluate their portfolio and ensure it is still in line with their new circumstances.

Investment Strategy Formulation

Once we have been informed of a client's investment objective, we will propose an investment strategy that we believe is aligned with those requirements and objectives. They form the basis of a strategy that will include both asset and security selection proposals.

Asset Allocation

Asset allocation is a medium to long-term process designed to capture more macro-economic determined events through investing in asset classes that we expect to appreciate and withdrawing from those we expect to decline. For example, investing in equities in 2007 would have been beneficial, as opposed to 2008 when an emphasis on bond investment would have proved a more successful strategy. Our investment team attempts to ensure that the asset allocation of the portfolio between the various asset classes is continually managed according to the changing economic cycles and financial markets. However, this process is always managed in accordance with the investment mandate and corresponding risk profile. During certain phases of the economic cycle, asset allocation is the most effective method of maintaining the performance of portfolios.

Fund And Security Selection

We monitor a universe of over 7000 funds, conducting structured and comprehensive research and in-depth qualitative analysis and due-diligence in order to choose the right funds for each portfolio. We invest with the best fund managers from the largest fund houses around the world, aiming to invest in the lowest cost institutional focused funds. Our team of analysts visit the managers we invest with, conducting 100s of manager interviews a year, all with the aim of ensuring the accurate selection of investments for your client’s portfolio.

Performance Monitoring And Review

Each portfolio is individually benchmarked in accordance with risk profiling and is monitored and reviewed by our investment managers on an on-going basis. Each individual fund is also checked for any style shift within the strategy employed to ensure that the continued management is in line with our expectations. We also continually monitor for any deviation from performance expectation against peer group and within strategy to ensure, as far as possible, that the underlying managers do not take actions that may impinge upon their ability to generate on-going satisfactory returns.

Risk Management

Each of our model portfolios is risk profiled so you can intuitively know which is appropriate to meet your client's investment objectives, which can be changed during the life cycle of their investment depending on their circumstances. Each of our services is available in Defensive to Adventurous, and our Premier service benefits from an additional Speculative portfolio option.

The chart is for illustrative purposes only. Weightings may deviate from these levels at the Investment Team's discretion whilst staying within speciﬁc guidelines.

Diversification

We understand that clients require a global perspective when investing. This ensures the broadest opportunity set to identify investments we believe will perform well in every economic environment. Building a diversified portfolio is an important aspect of our risk management process and ensures clients enjoy the benefits of rising markets and importantly protection for their portfolio during times of market volatility. Our portfolios are diversified by asset class, geographic region, strategy and fund manager.