1 April 2024
Overview
What we offer Financial Advisers
Cantab Asset Management (‘Cantab’) offers a comprehensive Managed Portfolio Service (MPS) to Financial Advisers. This includes our specialist ESG Portfolio services which suit clients requesting more sustainable (ESG) investment solutions.
The Managed Portfolio Service is for clients preferring a segregated portfolio. Portfolios are brought in line with Cantab models at the click of a button. We have a series of risk-rated portfolios which are used in line with the client’s attitude to risk. Financial Advisers can use the Cantab Discretionary Service in a range of wrappers, including Self Invested Personal Pensions, ISAs, offshore and onshore bonds.
Risk Ranking Affiliations
The Cantab portfolios are rated and ranked by Asset Risk Consultants (ARC) and Defaqto to ensure our solutions resemble the appropriate risk-return profiles for clients with different attitudes and capacities to risk. This relieves the compliance burden for advisers allowing them to focus on client relationships and business development.
Platform Availability
This list is growing and can be extended if you predominantly use another platform. Platforms provide online access so clients and Financial Advisers can view their holdings whenever they choose.
Joining Cantab and Information for Advisers
On signing the Cantab Managed Portfolio Agreement, you will obtain access to the service, which will allow you to invest immediately.
- The Cantab Offering for Financial Advisers
- Due Diligence Questionnaire (DDQ), Investment Commentaries & Fact Sheets
Cantab Asset Management – a little background
Cantab is a successful investment management firm based in London and Cambridge.
- We have a track record of excellence dating back more than thirty years.
- We have considerable expertise and understanding of investment strategy, asset allocation, fund selection and stock analysis.
- Our investment committee is made up of experts from different disciplines. This depth of knowledge is made available to all clients through our investment research team.
Cantab’s Discretionary Fund Management gives Financial Advisers access to the service via the VT Cantab funds, on a bespoke basis or through our Managed Portfolio Service. Cantab works with Financial Advisers to assist in achieving investment objectives.
Portfolio Overview
What are the objectives of the portfolios?
The portfolios seek to generate superior risk-adjusted returns with a robust and disciplined investment process. The focus is on investing in actively managed funds with a track record of strong risk-adjusted returns and holding them for the long term.
How many funds will the portfolios contain?
The portfolios typically invest in 15 – 25 funds and are well diversified both by region and industry.
What restrictions are in place?
The portfolios typically would not invest in open-ended property funds to reduce liquidity risk and also does not invest in ‘black box’ structures to minimise tail risk.
What investment framework do the portfolios follow?
The Investment Framework follows a Multi-asset approach in the construction of a diversified portfolio of daily dealing open-ended funds and investment trusts. Diversification is achieved both geographically and by asset class, which typically includes Equities, Infrastructure, Property and Fixed Interest.
What is the investment process of the portfolios?
With a global fund universe of over 3,000 funds, the first step revolves around excluding funds with short performance track records. This is followed by historic performance analysis which aims to identify funds that have consistently outperformed peers in its sector whilst achieving top quartile risk-adjusted returns over long time horizons.
Analysing quantitative risk metrics provide the investment team with insights on the performance behaviour of funds during periods of material economic stress. This feeds into portfolio construction to ensure each portfolio resembles its stated risk profile. The quantitative risk analysis supports the qualitative assessment of funds, which primarily focusses on the diversification benefits associated with different geographies, investment styles and fund houses. Finally, when selecting a fund, Cantab aims to build personal relationships with managers, which commonly involves meeting the investment team.
Using a proprietary monitoring framework, weekly research meetings and quarterly investment reviews are conducted to ensure that the underlying holdings in the portfolios continue to meet the investment case.
What is the portfolio turnover and what limits are in place on position sizing?
We intend to hold positions for the long term, and so portfolio turnover will be low. A typical investment size for a new holding will range between 5% and 15% of the portfolio, and for risk management purposes we will not let a position grow beyond these levels. Managed portfolios are rebalanced monthly.
What investment style will the portfolios employ?
We do not recommend wholesale adoption of any single investing style, believing a blend of styles is key to generating superior long-term, risk-adjusted returns.
Your dedicated Cantab Team
Risk Warnings. This document has been prepared based on our understanding of current UK law and HM Revenue and Customs practice as at 1 April 2024, both of which may be the subject of change in the future. The opinions expressed herein are those of Cantab Asset Management Ltd and should not be construed as investment advice. Cantab Asset Management Ltd is authorised and regulated by the Financial Conduct Authority. As with all equity-based and bond-based investments, the value and the income therefrom can fall as well as rise and you may not get back all the money that you invested. The value of overseas securities will be influenced by the exchange rate used to convert these to sterling. Investments in stocks and shares should therefore be viewed as a medium to long-term investment. Past performance is not a guide to the future. It is important to note that in selecting ESG investments, a screening out process has taken place which eliminates many investments potentially providing good financial returns. By reducing the universe of possible investments, the investment performance of ESG portfolios might be less than that potentially produced by selecting from the larger unscreened universe.
