With so many funds available, it can be difficult to know where to begin when building an investment portfolio. The discovery shortlist is one way to help investors narrow down from the thousands of funds available to a more manageable starting point.
Chosen by our Investment Research Team, the shortlist of third party funds is designed to assist investors in creating diversified, well-balanced portfolios. The discovery shortlist is based on in-depth research and analysis and is comprised of funds across all the major sectors that our specialist team view as interesting long-term investment opportunities.
Only funds which meet our strict selection criteria are chosen to be included on the discovery shortlist– if we lose our conviction, the funds are removed.
The Discovery Shortlist contains a mixture of both funds that are designed to generate an income and funds that focus on growth. We ensure there is balance across all major asset classes and group the funds into the following five categories; bonds, equities, developed markets, emerging markets and diversifiers.
Our research process is focused on identifying a fund manager’s skill. To define this, we look at four key areas:
It's important for us to understand the fund manager themselves and the organisation they work for. We look at how they attract and retain talent and whether their interests align with our own.
We speak to the manager to learn about their culture and gain insight into what 'edge' they believe they have and what inefficiencies they are trying to exploit.
We look for the manager to demonstrate that their processes and strategy are robust, repeatable, and are resilient in differing market conditions.
We view performance as a product of the former three areas, as opposed to the starting point. We believe performance should be consistent with both philosophy and process and we aim to find managers who are truly adding value for investors.
The shortlist of third party funds is designed to assist investors in creating diversified, well-balanced portfolios which have the greatest potential for long-term performance.
If you are a Self-Directed investor and the prospect of choosing investments is somewhat daunting, the Discovery Shortlist could be one way to help you get started.
The Discovery Shortlist is available to existing clients and can be accessed via our online portal. This is just one artefact in a library of research articles, educational information and tools that we offer to help investors make better informed decisions.
The shortlist was created for investors who are confident in choosing their own investments and is not a personal recommendation to buy funds. Equally, if a fund you own is not on the Discovery Shortlist, we're not recommending you sell it. You must ensure that any fund you choose to invest in is suitable for your own, personal circumstances.
Our analysts meet face-to-face with hundreds of fund managers each year in order to assess against our key principles. We continuously monitor the funds for any changes in our assessment criteria which might impact future returns or change our confidence in their performance potential. Given the significant amount of analysis and research undertaken we do not expect to see frequent fund changes, which supports our view that the Discovery Shortlist contains funds which are suitable for the long-term.
If you don't feel comfortable building and maintaining your own portfolio and would prefer we do the hard work for you, we offer ready-made portfolios to suit a range of investment objectives. Please note, no advice is being given as to the suitability of any of the funds within the shortlist for your personal needs or within the ready-made portfolios. Any decisions are your own responsibility. For those who feel they could benefit from financial advice, please contact us for a complimentary no obligation consultation with one of our experienced financial advisers.
Before you invest, make sure you feel comfortable with the level of risk you take. Investments aim to grow your money, but they might lose it too.