FAQ Regarding Core and Tactical Portfolios
Rachael Simm - Investment Analyst
What is the difference between Core and Tactical?
The Tactical Portfolios use the current Reeves Independent Strategy, only named Tactical to differentiate between Current portfolios and Core. It uses the exact same strategy and service our clients are already receiving, this is not a new technique, we are simply updating the current portfolios. It is loosely based on an industry recognised Benchmark but takes into account Nigel’s Market Outlook also. This means that it looks at the short-term risks present in the market and uses a tactical approach to take advantage. It will be reviewed monthly and so changes could be as frequent as this. The changes will be based on the discussions we have with our external advisers during our monthly investment meeting. Over the year, as there will be more frequent changes, there will be higher transactional charges, but it is important that clients know that Reeves does not charge any more for this service – we do not add any transactional charges ourselves. Because of the more frequent changes there will be a higher range of outcomes for clients.
The Core Portfolio is reviewed once or twice a year depending on major market movements, so could be advantageous for clients who do not want to make frequent decisions regarding their portfolio. Over the year the Core portfolio offers lower charges as there are fewer transactions every year. Because of fewer changes, there are fewer outcomes. The Core portfolios are based on an industry recognised Benchmark – we have kept within certain margins of this. It is a long-term strategy using a ‘Buy and Hold’ approach, ignoring short term risks that may be present in the market
Does this mean we are moving away from Transact?
If you are currently on Transact, you will remain on Transact. The portfolios use your current platform and so you will not need to change platforms to update your portfolio.
Can I change from the Tactical to the Core if I am not happy, or vice versa?
Yes, you can change if you are not happy with what you have chosen. Book a call with your client account manager or a member of the investment team and we can change you based on what you would prefer. Please don't hesitate to contact us if would like a change in the level of service you are receiving regarding your portfolio.
What are the differences in charges?
The Tactical Portfolio will have more transactional charges over the year compared to the Core Portfolio as there are more frequent changes to funds. All versions have higher charges than current portfolios as currently we have much higher levels of cash than is usual.
What is the Reason for Change?
At Reeves Independent we have a full investment team who regularly meet to review portfolios and it was decided at our last meeting that we needed to update portfolios due to changes in the market. There is more uncertainty than ever, global growth is slowing, funds are changing their tactics. We have had a lot of feedback from clients who would prefer less frequent decision making and so we wanted to offer more choices for clients instead of a ‘one size fits all’ approach.
Do you have a question? Email us at firstname.lastname@example.org.
It is important that no actions should be taken without first taking advice. Personal circumstances and an individual’s appetite for risk means that the advice for one person may not be the same for everyone. Reeves do not advise on Defined Benefit pension schemes. Reeves do introduce a third party specialists in areas of work we do not cover. Reeves run an advanced investment portfolio management service on an advisory basis only