Aligned to the investment goals, objectives and risk profiles
Managing Portfolios through an investment platform
As the investment manager, Tatton makes adjustments to our portfolios through periodic updates and rebalances. Rebalancing a portfolio is to realign investments in a portfolio to ensure they remain aligned to the investment goals and objectives and risk profiles agreed with a financial adviser that has recommended Tatton.
Whilst Tatton does not have fixed portfolio update and rebalance dates, we make changes to portfolios generally once each quarter. These changes can be small r to bring the portfolios into line with our target asset allocations or larger adjustments if we believe market conditions necessitate bigger changes. During a portfolio update and rebalance our operations team build new portfolios on each of the platforms and then trade the old portfolios into the new ones.
In 2016 we introduced the Overlay Strategy on our Managed and Core Portfolios to reduce the risk of operational delays and improve trading efficiencies. Taking the form of a fund, the investment team build portfolios on a client’s chosen platforms with half invested directly into funds and the remainder duplicated in the Overlay Strategy. We use this feature to allow us to purchase closed funds, new funds and assets that are not tradable on a platform, but can be held in a fund such as Exchange Traded Funds (ETFs) – a valuable diversification tool. It also reduces operational platform risk by allowing us to execute fund trades within an update and rebalance more efficiently.