Financial professionals disclaimer

The information on this page is intended only for the use of independent financial advisers (IFAs) and other professional financial intermediaries. Please read the following information before proceeding. Reliance should not be placed on the information within this website and the views expressed when taking investment decisions. Please also confirm that you are an IFA or other professional financial intermediary, that you have read the information and wish to proceed further by clicking on the ‘Accept’ icon. If you are a retail investor, please click on the ‘Decline’ icon and visit the FP Brompton funds and WAY Global funds pages of our website. If you do not wish to proceed further, please also click on the ‘Decline’ icon.

Views and opinions

Brompton has expressed views and opinions on this website and these may change.

Accuracy

Brompton has taken reasonable care and employed reasonable skill to ensure that the information contained in this website is accurate at the time when this information is supplied by Brompton via its internet service. Errors and omissions may, however, occur because of a number of factors inherent in web-based information delivery and are not within Brompton’s reasonable control. For example, errors or omissions may occur because of unauthorised access to this website or the impact of hardware, software or operator error or a data transmission malfunction. Brompton, therefore, advises website visitors to confirm the accuracy of any information with Brompton before seeking to rely on such information.

Please read the following important information before proceeding. This includes information on some of the laws and regulations applicable to this website.

The information on this site is issued and approved by Brompton Asset Management LLP (Brompton) of 1 Knightsbridge Green, London, SW1X 7QA. Brompton is authorised and regulated by the Financial Conduct Authority.

This website is for information purposes only and prospective clients should refer to Brompton’s printed literature. Any prices and other information on this website do not constitute personal recommendations or advice.

The material on this site is directed only at persons in the UK. It is not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. It is your responsibility to inform yourself of and to observe all applicable laws and regulations of the relevant jurisdictions. Specifically, this website should not be accessed by any US Person. Please see a definition of a US Person at the end of this document.

Brompton may record telephone calls to protect the interests of clients and itself and to improve customer service.

Investments

You should always bear the following in mind:
Past performance is not a guide to future performance.

The value of investments and any income from them may go down as well as up and you may not get back all of your original investment. Changes in exchange rates may cause the value of investments and the income from them to go down or up.

If you are unsure about the meaning of any information provided on this website, please consult your financial or other professional adviser. Brompton Asset Management does not offer investment advice.

No reliance

Brompton has taken all reasonable care that the information contained within the website is accurate at the time of the publication. Brompton, however, makes no representation or warranty, including liability towards third parties, expressed or implied, as to its accuracy, reliability or completeness. Information, opinions and estimates and any other contents on this website are provided by Brompton for information purposes only and are subject to change without notice.

Nothing contained on the website constitutes investment, legal, tax or other advice nor is to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision.

No warranty

Brompton assumes no responsibility for, and makes no warranties that, functions contained on the website will be uninterrupted or error-free, that defects will be corrected, or that the website or the servers that make it available will be free of viruses or other harmful components.

Liability waiver

Under no circumstances, including, but not limited to, negligence, shall Brompton be liable for any special or consequential damages that result from the access or use of, or the inability to access or use, the materials at the website.

You should be aware that the internet is not a completely reliable transmission medium. Brompton shall not have any liability for any data transmission errors such as data loss or damage or alteration of any kind, including, but not limited to, any direct, indirect or consequential damage, arising out of the use of the services provided herein.

Messages that you send to Brompton by e-mail may not be secure. You are recommended not to send any confidential information to Brompton by e-mail. If you choose to send any confidential information to Brompton via e-mail you do so at your own risk with the knowledge that a third party may intercept this information. Instructions sent by you via e-mail and to the website are processed exclusively at your risk.

This website may contain links to other sites. Brompton is not responsible for the content or privacy practices of those other sites.

This website is governed by the laws of England.

Use of your personal data

We will use the personal data that you provide us on the website to process information requests that you make. In order to use your personal data as set out here, these may be stored and processed in any country worldwide and will be disclosed to partnerships and companies in the Brompton group and their agents.

Further information

This information will be updated from time to time. You are advised to check if any such updates have been made since you last visited this website.

US Persons

A US Person is any natural person resident in the United States (US); or a company or partnership incorporated or organised in the US, but excluding an offshore branch or agency of a US person that operates for valid business reasons and is engaged and regulated as an insurance company or bank; or a branch or agency of a foreign entity located in the US; or a trust of which the trustee is a US person, unless a non-US person has or shares investment discretion; or an estate of which a US person is the executor or administrator, unless the estate is governed by foreign law and a non-US person has or shares investment discretion; or a non-discretionary account held for the benefit of a US person; or a discretionary account held by a US dealer or fiduciary, unless held for the benefit of a non-US person; or any entity organised or incorporated for the purposes of evading US securities laws.

Financial professionals

Brompton has a range of multi-asset funds that embody the dynamic asset allocation philosophy of our investment team headed by Gill Lakin, our chief investment officer. The range of funds is designed to suit the diverse needs of private investors factoring in their appetite for risk. Gill and her team also deploy their disciplined investment approach in providing asset allocation and fund selection services for model portfolios and risk-graded investment strategies and manage collective investments tailored to the needs of specific client groups. Please click on the various tabs below to discover more.

Dynamic asset allocation 

Introducing Brompton's investment process

Dynamic asset allocation is at the heart of the Brompton multi-asset investment process because we believe this will be the principal driver of returns for our fund investors. Two major bear markets since 2000 have made investors aware of the importance of choosing an asset manager focused on determining if the environment is one in which investors will be rewarded for taking risk rather than simply seeking to deliver a relative return.

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Our dynamic asset allocation approach gives us the flexibility to invest globally on behalf of our fund investors in all major asset classes. It is the principal means by which we aim to add value. Our objective is to select the right asset classes, geographical areas and investment themes at the correct time in the investment and economic cycle. This is a demanding task and we have developed our asset allocation process in response to this challenge.

First, we use the information conveyed by numerous economic data releases to build up a picture of the outlook for the global economy. Secondly, the message conveyed by the data is combined with our knowledge and investment experience to determine which investments are likely to perform well in the prevailing economic conditions. Thirdly, we analyse the valuation case for these assets to identify the genuine investment opportunities.

We recognise the importance of building fund portfolios that are not wholly dependent for their success on a narrow range of investment outcomes. We, therefore, combine the assets in our funds to offer a measure of protection under a range of different scenarios. Careful consideration is also given to the implementation of our investment decisions and we use momentum and sentiment indicators to help refine our timing.

We use information from many sources, not just macro-economic data releases, in coming to our views. We invest in economic research produced by selected economists and strategists in order to challenge and improve our decision making. Our investment process involves frequent meetings with specialist managers investing across the spectrum of different asset classes and regions and we also draw on their observations and experience when reviewing our strategy.

We focus on our strengths and only invest in high-conviction ideas, seeking to avoid consensus thinking. Our consistent emphasis on forward-looking data and our strong valuation discipline often lead us to consider out-of-favour assets and help us avoid over-hyped markets and investment bubbles.

A proper respect for investment risk

Diversification is one of the most powerful concepts in asset management, allowing managers to reduce risk through investment in a range of different assets. We seek to manage the risk in our fund portfolios by diversifying across a number of different asset classes, geographic regions, currencies and investment themes. The portfolio construction process is designed to ensure that performance is not narrowly dependent on one central outcome, with all investments likely to move together. We consider how our fund portfolios will be affected by a wide range of different outcomes. Our range of multi-asset funds allows investors to select the level of risk appropriate for them. 

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Investing in funds also allows us to diversify risk at the individual security or underlying asset level. In a typical Brompton multi-asset fund portfolio of 15-20 funds, each fund will hold a broad range of underlying investments. This means that when these funds are combined in a Brompton multi-asset portfolio the contribution to risk from any one individual security is small and the principal driver of performance will be the overall asset allocation strategy enhanced by the returns from our fund selection process.

We analyse the level of risk at every stage in the process of portfolio construction, including the volatility or risk of the underlying funds in which we invest as well as the level of risk inherent in our multi-asset fund strategies. We utilise specialist risk analysis software to help us quantify and manage risk but we never surrender our common sense. Many risk assessment models rely too much on the historic relationships between assets and can sometimes underestimate the real level of risk. In particular, they do not work well in times of market stress when the correlations between asset classes can rise.

We do not stand behind a faceless investment committee when accounting for the decisions we make within our multi-asset funds. Responsibility for investment strategy ultimately rests with our chief investment officer, who is fully accountable both internally and to our clients.

A fund of funds approach to investing

Our fund selection process identifies specialist managers in our preferred asset classes, regions and sectors. We invest in funds managed by external managers because we believe this approach will lead to outperformance. Each multi-asset fund typically invests in a focused portfolio of 15-20 funds. Some funds in which we invest are managed by established industry names; others are from emerging boutiques with expertise in key areas.

Once we have decided to invest in a particular asset class, we choose that which we consider to be the best fund in that sector to meet our objectives. We do not think it is credible for one single investment house to claim to have a monopoly over investment talent and excel in all areas. Our fund selection process has been developed to identify the most talented managers wherever they might be. We do not invest in other Brompton products.

We use our scale and buying power to gain access to some of the most successful managers and secure favourable terms. We have a transparent fee structure and we do not profit from transaction fees. We do not retain commissions or rebates that may be generated within our investment funds.

We take an active approach to fund selection, preferring to invest with independent-minded managers rather than adopting an indexed or passive style of management. We have a preference for managers who show genuine commitment, either by investing in their own OEICs and unit trusts or through equity ownership, but above all our approach to fund selection is pragmatic.

We will, however, consider all available investment vehicles when determining how best to gain exposure to a particular asset class. Thus, we may invest in funds that mirror a particular benchmark or index if we cannot identify an actively-managed fund with the potential to meet our clients’ needs consistently and we decide that a passive investment is the most effective means of gaining the exposure we seek. Where we invest in funds of this nature such as exchange-traded funds, we will only do so if the investments are backed by the underlying assets. We may sometimes invest in investment trusts.

Our fund selection process sifts through an investment universe of more than 30,000 funds looking for successful managers. We seek to identify managers who have not just delivered good returns but who can demonstrate consistency and have justified the level of risk they have taken. We use quantitative tools to help in the early stages of manager selection but the final decision is a subjective one. Once we have invested in a fund we continue to monitor it closely and meet the manager regularly.

Portfolio construction

The output from our investment process is used to populate investment funds that aim to deliver outstanding performance for our investors while also catering for their diverse attitudes towards risk. Our nine funds have clearly differentiated investment objectives and sit within five of the principal Investment Management Association sectors, IMA Mixed Investment 0-35% Shares, IMA Mixed Investment 20-60% Shares, IMA Mixed Investment 40-85% Shares, IMA Global and IMA Flexible Investment. All our funds are eligible for inclusion in an ISA. Each fund portfolio is dynamic and changes as our investment thinking evolves. Our investment committee meets quarterly on a formal basis to review the performance and investment risk management of our strategies.

Security of assets

Brompton provides discretionary investment services for mutual funds but does not take custody of investors’ assets. This segregation of responsibilities is important to many investors.