Indexed Portfolio Management

Passive Portfolio Service

Given the cost of actively managed funds, approximately three-quarters of investment managers have, and will continue over the long term, to underperform the overall market. And those who do outperform are very difficult to identify in advance, while those who fall short, fall short considerably.

As a result, actively managed funds have become a “loser’s game”. One of the best opportunities to achieve superior investment results lies not in attempting to outperform the market, but in establishing and adhering to an appropriate long-term investment policy that employs low-cost and broadly diversified passive investment strategies.

The lowest cost way to invest is through index exchange traded funds (ETF).

So, what exactly are ETFs?

An Exchange Traded Fund (ETF) is a combination of the best features of conventional mutual funds and individual stocks.

Generally speaking, an ETF represents a portfolio of securities (such as stocks, bonds or alternative assets), which aims to track the performance of a specific market index (like the S&P 500). An ETF is bought and sold on a stock exchange, like a share.

Index Portfolio Management

Buying a single ETF gives you exposure to a specific market. Alternatively, you can buy a range of ETFs over several markets in order to implement a more sophisticated investment strategy.

In short, ETFs represent building blocks which can help you create the investment portfolio you want.

Whether you are looking to invest in European equities or bonds, or more exotic choices like emerging markets, clean energy or commodities, there is an ETF suitable for your needs.

Investment Process

Our role as advisers is to help each client identify, understand, and commit to long-term investment objectives that are both realistic and appropriate. Key to achieving investment success is the development of a thoughtful investment policy that guides the following portfolio design and management process:

Step 1. Identify Risk and Return Objectives – Analyze the investor’s need, ability and willingness to take financial risk in light of time horizon, cash flow requirements and long-term financial goals.

Step 2. Determine the Appropriate Asset Allocation – Carefully combine asset classes to maximize expected return for a targeted level of portfolio risk.

Step 3. Select Optimal Investment Vehicles – Identify the strategies that most reliably and efficiently deliver the asset class returns desired for the portfolio.

Step 4. Employ Disciplined Real-Time Portfolio Re-balancing – Ensure maintenance of a targeted level of portfolio risk while consistently capitalizing on the buy-low/sell-high opportunities created by market volatility.


The benefits of an index tracking managed account are as follows:

  • Complete Access
  • Tax efficiency
  • Low management cost – just 1% p.a.
  • Transparency in fees and management
  • Safety – the world’s largest fund managers
  • Low volatility
  • Individualized results
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