Our balanced really does mean balanced

The FTSE 100 fell 10.82% on 12th March 2020, worse than any single day in 2008 and beaten only by ‘Black Monday’ in 1987. Drops like this over the past few months have seen the indices’ value drop from 7,604.30 to 5,190.78 year to date.

To put this into context, the gains from 1st January 2017 to 1st January 2020 totalled 20.86%, which were completely wiped out earlier this month and are falling further still, illustrated below.

 Source: FE Analytics 

The need for a risk-controlled active management style has never been more important. As such it’s imperative to make sure your clients’ investments are fit for purpose and don’t take on unnecessary risk with over-exposure to certain asset classes, potentially tracking drops like the above.

Our balanced portfolios have a 50% target weighting to equities and tend to stick to this allocation – unlike some of our competitors whose equity allocation within balanced portfolios is around the 65% mark (sometimes even 70%).

To illustrate, the charts below show the asset allocation across the TAM Premier portfolios as at 31st December 2019 (as you can see we didn’t take on unnecessary levels of risk to produce returns last year) and their outperformance against the FTSE 100 from inception (1st January 2008) to 20th March 2020.

TAM Premier Asset Allocation as at 31/12/19


Source: TAM Asset Management Ltd

TAM Premier Portfolio Performance as at 20/3/20 

Source: TAM Asset Management Ltd. TAM Premier performance from inception (1/1/08) to 20/3/20 net of fees. Past performance is not a guide to future returns and investors may get back less than their original investment.
The returns above are net of fees. The relative scores show how much each portfolio has out-performed its benchmark. They are a great indication of how our portfolios can generate stable, dependable investment returns throughout volatile market cycles. Speaking of fees, we’re quite conscious of how hefty price tags can help erode value in all market cycles, which is why we try to be as fairly priced as possible and a reminder of our competitively priced AMCs are below:

•       Premier (mainstream) – 0.50% AMC
•       Focus (mainstream) – 0.25% AMC
•       Ethical – 0.40% AMC
•       Sharia – 0.50% AMC
•       Passive – 0.15% AMC
As you will be aware, TAM is working remotely but our business development team remains on hand to support you, and are happy to answer any questions or queries you may have at this time – we are here to talk.