Strategic Asset Allocation
Define the clients individual expectations and investment goals taking into account their income needs, investment horizon, anticipated cash flows and risk tolerance.
Tactical Asset Allocation
Implementing an active management portfolio strategy that rebalances the percentage of assets held in various categories in order to take advantage of market pricing anomalies, strong market sectors or events.
Reporting & Reviewing
Regular meetings with clients are fundamental to the Londinium service philosophy. In personal meetings the relationship manager informs the client on past performance and reassess his risk appetite based on current and expected market conditions as well as each client personal circumstances.
The Relationship Manager
At Londinium the pillar of the wealth management process is the relationship manager. The relationship managers are typically senior associates in the firm and are experienced professionals who understand their clients’ needs and expectations and can present these to the investment committee in a form that facilitates the implementation of a particular “strategic asset allocation”. The strategic asset allocation is a long term plan however situations will arise which will suit the execution of a Tactical Asset Allocation, at these junctures the input of the relationship manager is critical in determining whether the actions are consistent with their client’s current attitudes and expectations.
The Investment Committee
The investment committee is made up of the relationship managers, senior associates, the research team and the fund managers. The Committee reviews recent movements in the main investable asset classes (equities and bonds in developed as well as emerging markets, currencies, hedge funds and commodities). It also considers most recent macro developments and focuses on the themes expected to mostly affect the market behaviour in the short to medium term.
Asset allocation changes, aim at adding value by taking advantage of evolving market conditions. Dynamic asset allocation shifts try to capitalize on perceived opportunities to potentially boost total portfolio return and reduce risk.