Investment Services
Optimising the performance of an investment is all about managing the degree of risk the investor is exposed to, and minimising that risk while still giving the portfolio exposure to the more profitable, and potentially more risky, sectors of the investment market.
All Advisers in the Hart Partnership follow the principles of Modern Portfolio Theory that forms part of the Hart Investment Programme.
The Hart Investment Programme
We have developed proven methods of successful long term investing, providing you with the means to meet your investment objectives. The key areas of our process are as follows:
Asset Allocation
Different investment types tend to rise and fall in value at different times, e.g. Over the past few years the housing market has risen while the UK stock market has fallen. Harry Markowitz* was awarded a Nobel Prize for his work showing that Asset Allocation, the mix of different assets held in a portfolio, is the single most important factor in determining the performance of investment portfolios**. This is a method that we adopt within the HART Investment programme with considerable success.
Through the use of detailed computer modelling, the HART Investment Programme provides our clients with an optimal mix of assets giving a higher potential return for any given level of risk and steadier investment growth than would otherwise be expected. Our results reflect this.
* Harry M. Markowitz (b. 1927) was awarded the Nobel Prize for Economics in 1990 in conjunction with Merton H. Miller & William F. Sharpe for "their pioneering work in the theory of financial economics"
** As shown by studies such as "Determinants of Portfolio Performance II: An Update," Brinson, Singer & Beebower (1991)
Fund Selection
After assessing a suitable asset allocation mix for you, it is important to choose the most appropriate managers and funds within each sector. By selecting those fund management companies with special areas of expertise and those fund managers with a history of strong performance, an very effective combination of funds can be compiled. Some factors we consider when recommending funds include:
Consistency of fund performance
Fund risk
Value/growth orientation
Small/large cap orientation
Fund size
Industry holdings
Underlying stock holdings
Standard & Poors® star rating
We are not restricted to the conventional mass-market funds and have access to many specialist fund managers, this helps to optimise your Asset Allocation and thus lower your exposure to risk. We will also incorporate direct investments in Property for example, when assessing and recommending your Asset mix.
