AIPM Adviser brochure

For use by professional financial advisers only For the use of professional Financial Advisers only An Introduction



Asset Intelligence Portfolio Management / An Introduction WELCOME Some of the biggest decisions you’ll make as a financial adviser are involved in designing your investment proposition. What risk profiling tool are you going to use? What is your investment philosophy? Are you going to manage the proposition yourself or are you going to outsource to a specialist? Get it right and you’ll have a business that is compliant This guide explains a little more about what we do, and and clients that benefit from a robust and structured how we work. If you’d like to find out more, please get in investment proposition. Get it wrong and it can lead to touch. We’d love to hear from you. complaints and fines. It’s easy therefore to understand why you might be cautious in making these decisions. Robert Love, Director Asset Intelligence Portfolio Management At Asset Intelligence we understand this. For not only are we investment managers, but we are also investment consultants. As well as managing portfolios, we are also experts in helping advisers build investment propositions from the ground up, so we can help you build a solution that perfectly fits the needs of your firm. This approach links to our core beliefs. We don’t believe that one size fits all or that success comes from chasing funds under management. Rather we believe in the value of partnerships, where both parties share the same values and are working towards the same goals. Most of all, we believe that quality beats quantity, where hand crafted is always better than mass production. 3

Dream, diversify, and never miss an angle! Walt Disney 4

Asset Intelligence Portfolio Management / An Introduction ABOUT YOU Before deciding on which investment management firm to partner with, you first need to be able to identify who you are and what you want from an investment proposition. What is it that makes your firm different? What do you Do you have strong investment views? Do you believe stand for? What are your values? What is your vision? How active management adds value or do you believe in would your clients describe yourself? Why do new clients an efficient market? Is your positioning based on cost come to you? or value? In terms of what you want from an investment proposition, At Asset Intelligence it’s no surprise that we believe your where does it sit in terms of value to your firm? Is it a core investment proposition should be core to defining who you element of defining who you are, what your firm believes are, that it adds a huge amount of value in differentiating in, and what makes you different, or do you see it as simply your firm and that it allows you to deliver the best solution part of a process? for your clients. If you think that sounds like you, please read on… 5

INTRODUCING ASSET INTELLIGENCE Our history As time went on, more and more firms started to Asset Intelligence was formed in 2009 as Asset approach Asset Intelligence Research to see if it would Intelligence Research, an investment consultancy be possible to offer discretionary services in order to firm set up to help financial firms who needed greater further enhance the solutions offered. Off the back investment support, but didn’t have the resources to of this Asset Intelligence Portfolio Management was build their own investment department. Initially focusing formed, built on the Asset Intelligence Research largely on ‘research’ support, Asset Intelligence rapidly base, but with the addition of discretionary portfolio grew, expanding to offer a more rounded solution, management services. As part of this development, including the building and management of advisory the Asset Intelligence team also expanded to increase portfolio solutions. This solution became what we term the compliance and marketing support offered to our ‘insourced investment department’, whereby we partner firms. deliver all the investment support you would expect from an inhouse team, whether that be research, portfolio management or written communications. £4.5BN £2.5BN 10 YEARS 10+ ASSETS UNDER ASSETS IN ADVISORY EXPERIENCE IN PROFESSIONALS INFLUENCE MODEL PORTFOLIOS THE SECTOR IN OUR TEAM 6

Asset Intelligence Portfolio Management / An Introduction Our structure We pride ourselves on our balanced blend of energy, new thinking and experienced leadership. In the centre of Asset Intelligence is the research team. This team has been established largely through utilising our relationship with the top universities in the UK to gain access to some of the brightest and most innovative minds you’ll ever meet. On top of that, this team better understands the world of tomorrow as their thinking isn’t restrained by the legacies of yesterday. Supporting, guiding and working alongside this team is our management team which is made up of individuals who are all experts in their relevant fields. What’s more, our management team have extensive experience of working in financial advice firms, so not only are they experts in functions such as investment management, compliance and marketing, but they also truly understand the role of being a financial adviser. This understanding is a key part of what makes Asset Intelligence Portfolio Management different from other investment managers. You can find out more about the teams on our website. Good fortune is what happens when opportunity meets with planning. Thomas Edison 7

Our approach Key to partnering with Asset Intelligence is our collaborative approach. When partnering with a new firm we follow a five-stage process that allows us to design and build a truly tailored proposition. 8

Asset Intelligence Portfolio Management / An Introduction Stage 1: Know your customer. Stage 4: Implementation. This is all about getting to know you, understanding your With agreement reached, this stage is about bringing the business. What does your business look like, who is your proposition to life. This requires four main elements: typical client, what is your investment philosophy? What risk profiling tool do you use, what are your views on Legal – Finalising terms, signing of contracts/agreements. active and passive management? Are you looking for just growth solutions, or do you also need income solutions? Operations – Building the portfolios on your chosen How do you wish to operate – ‘agent of client’ or ‘agent platform(s), setting up your access to the portfolios, etc. as client’? Collateral – Design and production of factsheets, guides, Stage 2: Research. investment mandates. With a full understanding of your business gained, we will work on the design of a solution to meet the needs of Education – Training to staff on your proposition, how you and your clients. We will look at the asset allocation, it works, benefits, how to submit business, writing framework, holdings, etc. We will run simulations, back suitability letters, etc. test, etc. Stage 5: Ongoing management. Stage 3: Recommendation. Launching your proposition is just the start. Post Here is where we will present our solution. We will run implementation we will continue to provide all the through costs, rebalancing, strategic asset allocation, necessary support, which can largely be grouped under tactical asset allocation, maximum and minimum two areas: weightings. This is your opportunity to agree, question and challenge our proposals. 9

Asset Intelligence Portfolio Management / An Introduction Investment management Once we have agreed your investment needs, we take over all the pressures of the day to day management of your client’s portfolios. We will make decisions daily around the composition of portfolios from asset allocation to security selection. We constantly monitor and manage the risk inside the portfolios to ensure that we deliver the very best investment experience for you and your clients. In addition to providing a comprehensive suite of reporting on the investments that we manage on your behalf, we will meet with you periodically to discuss the portfolios. Client education We will provide you with fully compliant client-facing documents such as factsheets and newsletters. These will incorporate your branding and are ready for you to send straight to your clients. In addition, we will also produce ad-hoc communications as topical events happen such as Brexit updates, oil price wars, etc. 10

Asset Intelligence Portfolio Management / An Introduction Predicting rain doesn’t count. Building arks does. Warren Buffett 11

An investment in knowledge always pays the best interest Benjamin Franklin 12

Asset Intelligence Portfolio Management / An Introduction A WINNING TEAM Good financial planning is about having the right experts in the right positions. We believe that the best person to help a client identify their goals, attitude to risk and investment requirements is their financial planner/adviser. Likewise, we believe that the best person to manage their investments is an investment manager. Great financial planning is when these experts combine Comms Regular Correlation & as a team, working towards the same goal. That’s why to Fund Diversification we place so much emphasis on the importance of collaborating with financial advisers to design and deliver Investors Meetings Analysis solutions that are designed to meet the needs of both them and their clients. Put simply our solutions are: Cost Macro- Management Economic Designed with financial advisers. Powered by Investment Analysis Experts. Delivered for clients. Active/ INVESTMENT Strategic The role of an investment manager Passive MANAGER Asset Whereas your role as financial adviser is to look at the Decisions ‘whole picture’, our role as investment manager is much Allocation more focused, looking purely at delivering investment returns and managing risk. Rebalancing Tactical Asset The role is literally a ‘round the clock’ job, which includes Allocation multiple tasks as we look to help your clients achieve their goals: Fund Selection Performance Due Reporting & Diligence Monitoring 13

BENEFITS OF DISCRETIONARY FUNDS The key benefit of operating under a discretionary basis is that it allows us a freedom to operate promptly and without a requirement to obtain approval prior to making changes, which ensures: 14

Asset Intelligence Portfolio Management / An Introduction • We can protect portfolios by removing funds if they In addition to offering the above benefits to your clients, are underperforming or if there are any potential there are also benefits for you as the adviser: concerns such as them being suspended. • It reduces your admin. Once a client is invested in the • We can enhance portfolios by adding funds we have portfolio you don’t need to obtain approval to make identified as having potential for good growth/returns. changes to their portfolio or to make fund switches. • We can reposition portfolios either towards or away • You don’t have to worry about version control from sectors based on economic activity (i.e. after a or clients being in old portfolios. Everything is market crash, ensuring portfolios are positioned automatically updated. to take advantage of sectors that are looking to • Greater support for you with your marketing and client rebound fastest). communication strategy as we provided branded materials for you to use. Without being able to operate under a discretionary basis it could result in delays, which means portfolios could end • Control over your proposition. This is not an ‘off the up holding funds which are detrimental to performance shelf’ solution. This is part of YOUR proposition. This or miss out on enhanced returns as we can’t react quick enables you to differentiate yourself in a competitive enough to new opportunities. industry. • It adds value to your business should you ever be looking to sell your business. Typically, advice businesses with clean and organised investment propositions are more appealing to potential purchasers. 15

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Asset Intelligence Portfolio Management / An Introduction ALIGNMENT We’re able to build investment propositions in line with whichever framework you require. AVAILABILITY We can look to make our discretionary solutions available through whichever platform you require. We’ll work with you to create the solution that is right for you. It is a mistake to look too far ahead. Only one link in the chain of destiny can be handled at a time. Winston Churchill 17

Asset Intelligence Portfolio Management / An Introduction GET IN TOUCH If you would like to discuss in greater details, please get in touch. Our contact details are: 340 Melton Road Leicester LE4 7SL 0208 144 8370 info@ asset-intelligence.com asset-intelligence.com assetintell Asset Intelligence Research This document is for the use of professional Financial Advisers only. No individual or company should act upon such information without receiving appropriate professional advice. 18

The stock market is a device for transferring money from the impatient to the patient. Warren Buffett

Registered address: Asset Intelligence Portfolio Management Ltd (Registered in Granville Hall England & Wales 11955590) is authorised and regulated by Granville Road the Financial Conduct Authority (Reference number 842662). Leicester Asset Intelligence Portfolio Management Ltd’s Registered Office LE1 7RU is: Granville Hall, Granville Road, Leicester, LE1 7RU. 0208 144 8370 info@ asset-intelligence.com 1012/09.2020 asset-intelligence.com