MANAGED PORTFOLIO SERVICE€¦ · between diversification, risk management and performance. As we manage your clients’ investments, you can manage your client relationships, creating

FOR INTERMEDIARY USE ONLY

MANAGED PORTFOLIO SERVICE

BLACKFINCHASSET MANAGEMENT

CONTENTS

Global investing with a disciplinedapproach to risk management

BLACKFINCH ASSET MANAGEMENT MPS | 03

OUR PHILOSOPHY

COMPLEMENTARY ROLES

INTRODUCING THE BLACKFINCH ASSET MANAGEMENT MPS

HOW DOES OUR APPROACH AID YOUR BUSINESS?

HOW DOES OUR APPROACH AID YOUR CLIENTS?

INVESTMENT PROCESS UNCOVERED

YOUR SPECIALIST MPS TEAM

RISKS

IMPORTANT INFORMATION AND FEES

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BLACKFINCHASSET MANAGEMENT

As an investment specialist with a 25-year heritage, we provide evolved solutions focused on capital protection, security and growth. Our philosophy is one of adaptation to market change and customer needs. We pride ourselves on bringing significant experience and expertise with a commitment to transparency.

We understand that advisers face a multitude of challenges, from operational to regulatory to financial. So we know you are looking for investment solutions that fulfil your own business requirements, alongside meeting client needs. For this reason, we have developed the Blackfinch Asset Management Managed Portfolio Service (MPS) in conjunction with our financial planning partners.

Through the MPS, we are dedicated to helping you focus on the growth of your business. You can have the assurance that we are managing the time, resource and regulatory requirements inherent in portfolio management. Furthermore, by partnering with an independently owned discretionary manager, your clients can benefit from an unbiased, whole of market approach, as part of an optimal investment solution.

Our Philosophy

RICHARD COOK FOUNDER AND CEO OF BLACKFINCH GROUP


Increasing complexity within financial planning has led clients to revaluate what factors they consider most important when engaging with advisers. More attention is now being paid to accessibility to advisers and quality of advice.

The Blackfinch Asset Management MPS has been designed to support this evolving value chain. The MPS delivers a range of risk-rated portfolio options, combining sophisticated strategies with a simplified approach. An important feature is that it is available exclusively through financial planning firms.

The MPS can give you the time and resources to enrich your client relationships and outcomes. As we work in partnership with you, our specialism lies within the investment process. Yours remains the expertise in managing the client relationship and implementing their financial plan.

Complementary Roles


“ We work to deliver attractive risk-adjusted returns over the long term, to help your clients meet their goals and aspirations.” RICHARD COOK FOUNDER AND CEO

FINANCIAL ADVICE

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YOUR CLIENT

In designing the Blackfinch Asset Management MPS we started with the end investor’s needs in mind. This approach led us to construct a range of portfolios with the objective of combating inflation; the metric we feel is most relevant to investors.

Research conducted with financial planning firms has reinforced our belief that there is a disconnect between investors’ needs and the solutions available to them. In contrast, we believe our MPS can deliver significant benefits to both you and your clients.

It gives access to a range of carefully constructed, independently risk-rated portfolios that are actively managed. The portfolios aim to deliver on their objectives through investment in mainstream, UCITS compliant, collective investments. They are mapped to third party risk profiling tools and rebalanced on a monthly basis to ensure the risk and returns are consistent with the selected profile.

The specialist team behind the MPS focuses solely on managing the portfolios. We adopt a global, whole-of-market approach to multi-asset class investing. As part of an independently owned company, this ensures that we are free to execute on our best investment thinking without fear of conflict.Using Blackfinch’s discretionary permissions, we review, rebalance and restructure the portfolios on an ongoing basis, focusing on the optimum balance between diversification, risk management and performance.

As we manage your clients’ investments, you can manage your client relationships, creating a path towards further profitability.

Introducing the Blackfinch Asset Management MPS


How does our approach aid...


ALIGNED TO YOUR ADVICE PROCESS

Our partnership approach is designed for seamless integration into your existing advice process. Underpinned by a range of tools and services, it allows you to leverage the skills and knowledge of the Blackfinch team throughout the process.

BUSINESS GROWTH With day-to-day management and oversight of portfolios delegated to Blackfinch, you can deploy your valuable resources to improve business efficiency, and reduce regulatory and reputational risks. At the same time our partnership approach can help to lower operating costs, enabling you to focus on client retention and acquisition.

CLIENT OWNERSHIP

With the Blackfinch Asset Management MPS available exclusively through advisers, you retain ownership of your client at all times, with full control over the relationship. We will not communicate directly with your client without your prior consent.

SIMPLICITY AND ACCESSIBILITY

Offering a range of risk-rated portfolios, accessed through third-party platforms, the Blackfinch Asset Management MPS is an accessible service. It follows a robust, straightfoward process; one that is easy for you to use and present to your clients.

INDEPENDENT OVERSIGHT

The portfolios and service proposition are independently rated by leading financial research companies, providing peace of mind that your clients’ portfolios are in trusted hands.

POSITIONING YOU AT THE FOREFRONT

OF THE ADVICE PROCESS

The Blackfinch Asset Management MPS includes the option of co-branding and/or white labelling collateral as required.

CLEAR INVESTMENT OBJECTIVES

We aim for predictable, stable returns with outcomes aimed at combating inflation, through constructing multi-asset, globally diversified investment portfolios. We believe that this is a prudent and proven strategy for maintaining the purchasing power of your clients’ money.

ACCESSIBILITY

We have made the MPS accessible at modest investment levels, yet with no upper limits on investment size. It is there for your clients to make investments, in the way that works for them, whether using it to invest a lump sum or make regular payments to their portfolio.

ACTIVE PORTFOLIO MANAGEMENT

With one hand on the tiller, and our eyes on the horizon, we work to find the balance between diversification, risk management and long-term performance potential. Spreading investments across geographies and asset classes helps to manage volatility.

WIDE-RANGING AVAILABILITY

Investors can access the Blackfinch Asset Management MPS via a range of tax-efficient wrappers including General Investment Accounts, ISAs and Self Invested Personal Pensions (SIPPs).

INVESTMENT EXPERTISE

Investors will benefit from skilled and dedicated professionals whose sole focus is managing the portfolios. The service draws on the specialism of the core investment team, alongside experts across Blackfinch, bringing over 100 years of combined experience.

Your business? Your clients?

“ Reflecting our commitment to transparency, information is always available to you and your adviser. This means you can see how your portfolio is progressing at any time.” ALEX SUMNER PORTFOLIO MANAGER


DEFINING OUR OBJECTIVES

We have developed and constructed a proposition that will bring clarity of objectives to the end investor. We believe that by targeting a range of returns above inflation, your clients can have a clear understanding of what to expect from the investment journey. To achieve the defined objective for each portfolio, we begin with strategic asset allocation, followed by tactical asset allocation and portfolio construction, with ongoing reviews. STRATEGIC ASSET ALLOCATION

Blackfinch’s Asset Allocation Committee is tasked with constructing and reviewing our strategic asset allocation. The Committee considers a range of factors including both historic and forward-looking investment themes and trends; fiscal and monetary policy; geopolitical risk; and other factors impacting on the wider economic world, to arrive at guidance on long-term asset allocation.

The Committee brings together professionals with wide-ranging expertise. This includes specialists in mainstream retail investment products; commercial and residential property; renewable energy; asset-backed lending; media; tax; the Alternative Investment Market; and unquoted investments. We draw on this expertise, the hybrid approach ensuring a strong understanding of the wider investment landscape. As investment teams work together and share ideas, this brings the benefit of insights from a very broad knowledge base.

TACTICAL ASSET ALLOCATION

The portfolio managers draw on the conclusions of the Investment and Asset Allocation Committees to construct tactical asset allocations each month in order to capitalise on short-term divergence in asset class performance. Risk and volatility are overriding factors that we consider at all times in the management of the portfolios. While the team has the freedom to implement their tactical asset allocations as they see fit, any significant variance must be agreed by the Asset Allocation Committee.

PORTFOLIO CONSTRUCTION

Our tactical asset allocation forms the basis of each portfolio’s construction. Within each asset class, the Portfolio Managers use a diverse range of investments in order to provide the optimal blend of diversification, performance and risk. By blending managers with diverse styles that complement each other, we aim to provide a smoother investment return.

Our investment selection process includes extensive quantitative and qualitative screening. Only a limited number of funds meet all our strict and detailed criteria to achieve a place on the Accredited List of investments that can be included in the portfolios. The Accredited List provides the building blocks from which we construct the portfolios.

ONGOING REVIEWS

Our active approach means that we are constantly focused on the economic outlook and will act quickly to exploit opportunities that arise. As such, we review, rebalance and restructure the portfolios on an ongoing basis, focusing on all aspects of each portfolio including overall risk level, volatility and performance, as well as monitoring each individual investment held.

In order for an investment to retain its place within our portfolios, it must demonstrate consistent delivery of its objectives. As part of this, quantitative and qualitative screening is an ongoing process, as is our dialogue with underlying fund managers.

Investment Process Uncovered

The MPS team works with total dedication but never in isolation. Integral to our investment process are several teams, representing key steps that ensure a consistent and robust approach. It is designed to mitigate risks and generate returns, as we invest across global markets on behalf of your clients.


Your Specialist MPS Team

The MPS team leads on portfolio management and fund selection, drawing on support from the wider investment team at Blackfinch.

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ALEX SUMNER PORTFOLIO MANAGER

Alex co-runs the Blackfinch Asset Management MPS. He brings nine years’ investment management experience, with a strong track record in managing private client portfolios and working closely with financial advisers. Alex holds the certificate in Private Client Investment Advice and Management as well as the Investment Advice Diploma. He is a chartered fellow of the Chartered Institute for Securities & Investment and has been recognised as an industry high flier, featuring in Citywire’s ‘Top 30 under 30.’

The MPS team leads on portfolio management and fund selection, drawing on support from the wider investment team at Blackfinch.

GARETH DEACON PORTFOLIO MANAGER

Gareth co-runs the Blackfinch Asset Management MPS. Gareth has 12 years’ experience in investment management, with expertise inthe construction of mainstream investment products for clients and intermediaries. He holds the Diploma in Investment Compliance as well as certificates in Bond & Fixed Interest Markets and in Private Client Investment Advice and Management. He is a chartered fellow of the Chartered Institute for Securities & Investment and has achieved Chartered Wealth Manager status.

RICHARD COOK CEO AND FOUNDER

Richard is the Chief Executive Officer and Founder of Blackfinch Group. He has been involved in the structuring and management of investment assets for over 14 years. Richard conceptualised and launched the Blackfinch brand and has overseen the growth and expansion of the company within the UK retail market. Previously, Richard worked in senior banking roles within Merrill Lynch and the Bank of New York.

RICHARD SIMMONDS CHIEF INVESTMENT OFFICER

Richard has 15 years’ senior experience in financial services, specialising in asset-backed fund management. Richard has extensive project, corporate finance and fund management experience across multiple asset classes. Richard holds an Executive MBA from IE Business School, the Certificate in Discretionary Investment Management, and the Diploma in Financial Planning. Prior to joining Blackfinch, Richard held roles at NatWest, FTSE and Credit Suisse in London and New York.

JASON WILLIAMS HEAD OF DISTRIBUTION

Jason joined Blackfinch with over ten years’ experience in financial services and a strong track record of managing relationships with intermediaries and advisers. Previously he worked as a Business Development Manager at a large DFM for over eight years. Prior to that, Jason worked at Eagle Star Trust Company, which became part of Zurich Financial Services, as a Sales Consultant.

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GUY LAVARACK INVESTMENT DIRECTOR

Guy brings in-depth knowledge of corporate finance gained through a number of structured finance (debt and equity investment) roles with Lloyds Banking Group. Other roles prior to Blackfinch include sales and marketing and divisional statutory company director for a FTSE-listed outsourced services provider, and the Wind Prospect Group, where he led the project financing/sale of renewable energy assets. Guy has a master’s degree from Cambridge University and is a Fellow of the Royal Geographical Society.

DAVID HIGSON INVESTMENT DIRECTOR

David manages the property team at Blackfinch. His previous role was as Manager in the Transaction Services team at PwC London, where he performed financial due diligence on deals across a range of sectors. David holds a degree in Economics from the University of York, is an ICAEW-qualified chartered accountant and is studying for the Investment Management Certificate.

JOLYON RIDGEWELL INVESTMENT MANAGER

Jolyon works within Blackfinch’s Renewables/Energy team. He brings a wealth of highly relevant experience and knowledge. His most recent role was at Ecotricity where he worked as a Strategic Investment Manager for two and a half years, focused on the origination, refinancing and divestment of renewable energy projects.

HAMISH MASSON LEGAL DIRECTOR

Hamish joined Blackfinch in 2018, bringing over 14 years’ experience as a corporate and finance lawyer. Previously he worked at Addleshaw Goddard, Barclays Bank, DLA Piper, and Harneys, and in private practice was ranked in all the major legal directories. Hamish has a masters’ degree from the University of London and a bachelors’ degree from the University of Durham.

STEFAN AGOPSOWICZ INVESTMENT DIRECTOR

Stefan has worked at Blackfinch since 2009, involved in the analysis and valuation of potential new investment opportunities for investor portfolios. Stefan is a member of the CFA Institute. He holds a current Statement of Professional Standing issued by the CFA Society United Kingdom, having passed Level 1 of the CFA exam and qualified for the CFA Level 4 Investment Management Certificate.

This investment may not be suitable for all investors. It is available through financial advisers, with whom investors should consult before making a decision. You should carefully consider the following risk factors with all other information contained in this brochure.

The MPS represents a medium to long-term investment and can be viewed as such. The range of assets, to which the Blackfinch Asset Management MPS provides exposure, all bring levels of investment risk. It is important that investors understand levels of return in relation to levels of risk and what is most suited to their risk profile.

Please bear in mind that fees and charges can affect investment performance. You can refer to the relevant portfolio factsheet detailing the annual management charge, along with the costs involved in investing in the underlying funds that form the portfolio. This can help to plan effectively.

CAPITAL IS AT RISK

Past performance is not a guide to future performance. The value of investments, and income from them, may go down as well as up. Investors may get back less than invested. Changes in rates of exchange may adversely affect the value of an investment. Changes in interest rates may impact the value of fixed interest investments. The value of investment may be impacted if issuers of underlying fixed interest holdings default, or perception of their credit risk changes in the market. There are additional risks related to investments in emerging or developing markets.

VOLATILITY RISK

The value of investments can go up and down. Volatility measures the rate at which they do. Equities are usually higher volatility than bonds, while cash is low volatility. There is a relationship between the level of volatility you take on in investing and the expected return. Greater volatility brings the potential for greater returns but also greater losses.

INFLATION RISK

Inflation is a general increase in prices and a fall in the purchasing value of money. It can affect the value of assets in which you have invested. Cash is the asset most susceptible to inflation risk. There is also a relationship between interest rates and rates of inflation. If the interest rate payable on cash is below the rate of inflation, the real value of cash is reduced.

CURRENCY RISK

UK investors will view investments in Sterling. Assets such as overseas company shares may be priced in foreign currencies. Their values will be dependent on the prices of the assets and the relationships of the currencies with the pound. In this way foreign currency investments can be more volatile.

Risks

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THE INFORMATION SET OUT ABOVE IS NOT AN EXHAUSTIVE SUMMARY OF THE RISKS

OF INVESTING IN THE BLACKFINCH ASSET MANAGEMENT MANAGED PORTFOLIO SERVICE.

BLACKFINCH WEALTH MPS | 18

Blackfinch Asset Management Limited is an Appointed Representative of Blackfinch Investments Limited which is authorised and regulated by the Financial Conduct Authority. Registered address: 1350-1360 Montpellier Court, Gloucester Business Park, Gloucester, GL3 4AH. Registered in England & Wales under No. 11639647.

Prospective investors must seek advice on the legal, taxation, financial and other consequences of investing and the risks involved. Prospective investors should not treat the contents of this brochure as advice relating to legal, taxation or other matters and, if in any doubt about the proposal discussed in this brochure, its suitability, or what action should be taken, should consult their own professional advisers.

Blackfinch Investments Limited has taken all reasonable care to ensure that all the facts stated in this brochure are true and accurate in all material respects. While there are no other material facts or opinions which have been omitted where the omission of such would render this brochure misleading, no representation or warranty, express or implied, is given as to the accuracy or completeness of the information or opinions contained in this brochure.

No liability is accepted by Blackfinch Investments Limited, or any of its directors, members, officers, employees, agents or advisers, for any such information or opinions. All statements of opinion and/or belief contained in this brochure, all views expressed and all projections, forecasts or statements relating to expectations regarding future events, represent Blackfinch Asset Management’s own assessment and interpretation of information available as at the date of this brochure (May 2020). This brochure does not constitute, and may not be used for the purposes of, an offer or invitation to treat by any person in any jurisdiction outside the United Kingdom.

This brochure and the information contained in it are not for publication or distribution to persons outside the United Kingdom. The Blackfinch Asset Management Managed Portfolio Service may not be suitable for all investors and we would recommend that prospective investors seek independent advice before making a decision.

This brochure is intended as a summary only. Investors and advisers considering an investment should read the brochure in line with the relevant fact sheets.

Important Information


Fees

TO AID SIMPLICITY AND TRANSPARENCY, THE ANNUAL CHARGE FOR THE MPS IS A FLAT 0.35%+VAT.

Please note, there will also be underlying fund charges that will vary for each of the model portfolios. These will fluctuate over time and we will publish the estimated fund charges on the respective factsheets.

Let us help

At Blackfinch our goal is to deliver a service to advisers and their clients that is second to none. We offer a wide range of resources for advisers. This includes full support on the Blackfinch Asset Management Managed Portfolio Service.

We are on hand to help you, at every stage.

PRODUCT TRAINING

PRESENTATIONS

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CASE STUDIES

T 01452 717070

E [email protected]

W BLACKFINCH.COM/ASSET-MANAGEMENT

A huge thanks to all the staff at Blackfinch who kindly provided their own photos for use in this brochure.

BLACKFINCH ASSET MANAGEMENT LIMITED IS AN APPOINTED

REPRESENTATIVE OF BLACKFINCH INVESTMENTS LIMITED

1350–1360 MONTPELLIER COURT, GLOUCESTER

BUSINESS PARK, GLOUCESTER, GL3 4AH

01452 717070 [email protected]

BLACKFINCH.COM/ASSET-MANAGEMENT V4.0 05.2020

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MANAGED PORTFOLIO SERVICE€¦ · between diversification, risk management and performance. As we manage your clients’ investments, you can manage your client relationships, creating