Model Portfolios

At OCM Asset Management we offer four main model portfolios whose targeted outcomes on a three year rolling basis range from delivering 5% per annum to 10% per annum which are risk graded between 3 and 6 by Distribution Technology. For example, OBI 5 is risk graded as a 3 and OBI 10 a 6 based on historical volatility of the portfolio of underlying assets.

In recent publications, the FCA has indicated concern that model portfolio investment solutions may not meet the requirements of the individual client. It is recognised that maintaining a static allocation to a single model portfolio is unlikely to sufficiently satisfy the “shoehorning” concerns of the regulator. Model Portfolios are all operated with an equity allocation from 0% up to a maximum position of 85% equity and will invest in the whole of the investment universe, using passive and active strategies when appropriate.

Clients do not get fixed into a model and remain static based on a single evaluation of risk, using a standard risk profiling questionnaire. We run the portfolios as standalone models with clear objectives and clients are individually allocated to one at a time and switched between them based on the following:

  1. Outcome we are trying to achieve for that individual client.
  2. The client’s indicative / emotional acceptance of capital losses over a 12-month period.
  3. Our analysis of where the market is in relation to perceived capital at risk.
  4. House view of expected volatility and short / medium term momentum

The aim is to deliver the clients’ required outcome and protect capital and move the client between portfolios, based on our perception of asset and portfolio volatility and the clients’ acceptance of it.

Our model portfolios are available on a wide range of Platforms, please contact us for a list. For information on each model portfolio and its performance see the links to he right.