If you were given a blank sheet of paper to design an investment management business that works solely with financial advisers, you might come up with something pretty close to Alpha Beta Partners’ model.
A relatively new entrant to the discretionary fund management (DFM) market, Alpha Beta Partners offers low-cost, outcome-orientated investment solutions. The business is free from conflicts and simply focuses on creating centralised investment propositions that marry perfectly with a firm’s advice process.
They are active managers of both active and passive investments, bringing institutional investment techniques to the retail market. The investment team creates multi-asset portfolios, aligned to risk rating scores from three to eight. The portfolios are invested in funds, investment trusts and exchange-traded funds – with ongoing charges that range from 33bps to 50bps.
Unlike other DFMs, Alpha Beta Partners does not offer off-the-shelf solutions. The company starts with the adviser and builds the investment strategy around their advice process and proposition.
The DFM uses a ‘risk first’ investment approach, which is constructed from the outset with risk management in mind. It is honed to the advice process and focuses on the associated risks agreed with the adviser’s clients.
What’s more, the company can support its adviser clients in a number of ways: from documentation, technology, marketing through to business development.
The Alpha Beta Core Portfolios
Alpha Beta believe:
» Asset allocation is the principal driver of returns. Delivering this core aspect cost effectively and efficiently is crucial when building a modern portfolio.
» Core Portfolios deliver actively managed asset allocation and carefully selected passive instruments. Our managers deploy a propriety investment process designed to deliver attractive returns
» Managing multi asset portfolios in line with a stated risk budget, and not breaching that risk budget budget is of great importance to investors and their advisers alike. Their “Risk First” investment process makes this possible.
Here are Alpha Beta Partners’ five defining points:
1) They only work with financial advisers
2) They don’t sell off-the-shelf solutions
3) Active management at a competitive price
4) They bring institutional investment techniques to the retail market
5) Low-cost risk-rated multi-asset portfolios on offer
You can find out more about the business here.