When MAP invests money for any client, it is not just a case of putting the money into a spread of funds and walking away – in fact it is the opposite of this.
When we invest a clients money, first of all it is into funds that are found to be performing consistently over the long period AND are still performing well over the previous 3 months. And that is basically our work merely starting because we then have 3 ongoing monitors.
1. Every calendar quarter we produce what we call the Recommended Fund List and this looks at shortlisting those fuds that have a consistent half decent performance over the previous 5 years. We usually only take funds in excess of £100 million, and any funds we choose need to show a reasonable level of consistency, as we don’t want to pick a fund that is doing 20% today and minus 3% tomorrow. As we need to be able to “rely” on some kind of consistency, then we only use funds that are statistically consistent.
2. Every week, we analyse all the funds in the Recommended Fund List and we list the top 10 performing funds in each risk category from the statistics of the previous 3 months. This then gives us the confidence that a fund that has performed consistently well over the previous 5 years is STILL performing well in the short term – and so can be used, and by listing these in order of return – lets us invest in the best performing areas at all times.
3. In addition to the above 2 monitors, which focuses on funds, what we also do at MAP is analyse all funds performances over time as well. It’s not too difficult to include fund ABC in your lists and it may be performing well over 5 years and maybe even over the last 3 months as well, BUT, don’t forget that in investing everything WILL change at some time, and you need to keep your eyes on things. So what I do almost daily is go into our investment platform and can list all the funds used, and keep my eyes on those funds showing a negative return. I will monitor these for a few days and if no improvement, will then look to switch clients out of those funds and into other ones that are doing well.
So basically, MAP does all the background work to get investments into the right funds and keep them in the right funds – even if it means changing them.
MAP looks after our client’s money as if it were our own.
The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority. For any enquiries, contact Andrew on 07957 836211 or enquiries@mapfinances.co.uk
