We believe our role is not to avoid risk altogether, but rather to understand the relationship between risk and reward. So we manage risk relative to the objectives of the portfolio and the client. It is because of this that our whole methodology starts with the client’s goals, moderated by their risk profile, before we select the appropriate asset allocation.
Different asset classes (such as equities, bonds and cash) have different characteristics, meaning that they respond differently to changing economic scenarios. These differences allow for the creation of complementary asset allocation combinations with appropriate risk and return profiles. This forms the foundation of our ‘Core’ investment solution for clients’ portfolios.
BMP Wealth utilises a core-satellite approach to portfolio construction and uses diversified multi-asset, multi-manager funds as the stable ‘Core’ holding of the portfolio. With the Core of the portfolio in place, ‘Satellite’ holdings are carefully selected through open discussion with the client whilst ensuring the overall portfolio aligns with the client’s objectives.
To understand how this is achieved, please read sections;