Our model portfolios are designed to achieve their investment objectives within a specific risk profile. We seek to provide a positive investment return over the medium to longer term, while generating an honest income and controlling volatility.
Thorntons Investments Steady Model Portfolio
Thorntons Investments Moderate Model Portfolio
Thorntons Investments Progressive Model Portfolio
Thorntons Investments Adventurous Model Portfolio
The cautious model aims to provide a low risk investment that preserves capital value and generates a sustainable income greater than that achieved from a deposit account over a three to five-year period. Typically, the majority of the portfolio will be invested in government and corporate bonds, with a smaller allocation to property and equities. The model is invested across a range of funds to achieve its aim.
The steady model aims to provide a low to medium risk investment that generates an income above that provided by UK Government bonds over a three to five-year period, with the prospect of capital appreciation. Typically, the portfolio will be invested across a spread of government and corporate bonds, property and equities. The model is invested across a range of funds to achieve its aim.
The moderate model aims to provide a medium risk investment that balances income generation and capital growth over a three to five-year period. Typically, the portfolio will be invested across a spread of government and corporate bonds, property and UK and International equities. The model is invested across a range of funds to achieve its aim.
The progressive model aims to provide a medium to high risk investment that targets capital growth over a three to five-year period, whilst still generating a respectable level of income. Typically, the majority of the portfolio will be invested in equities with the balance spread across property, and both government and corporate bonds. The model is invested across a range of funds to achieve its aim.
The adventurous model aims to provide capital growth over a three to five-year period. A low level of income will also be generated. Typically, the portfolio will predominantly be invested in equities, mostly international, with a small allocation to property and bonds. The model is invested across a range of funds to achieve its aim.
Volatility Management and Control
Volatility management and control are fundamental to the service we provide, given the close alignment between the models and your clients’ risk profile and capacity for loss. Each model is constructed with a three to five-year investment horizon and targets a specified risk budget. We invest in open ended funds to allow efficient rebalancing to model positions, and will use both tracker and active funds, utilising their respective advantages. There is a spread across a range of asset classes and funds to appropriately diversify risk, but not to the extent that the potential for performance is diluted.
Passive, index tracker funds are used to reduce the average OCF (ongoing charge figure) and provide efficient exposure to markets. Active funds are used for their potential to add performance alpha and also for differentiated investments, with limited correlation to the rest of the model. By blending both active and passive funds, we aim to use the advantages of both to enhance the end risk-return outcome.
All models will aim to minimise the underlying OCF, with a ceiling of 1%, and generate an income yield that should at least cover all costs incurred by the end investor. Our annual investment fee is 0.20% plus VAT. The estimated OCF for each model is:
|Thorntons Cautious Model||0.59%|
|Thorntons Steady Model||0.67%|
|Thorntons Moderate Model||0.61%|
|Thorntons Progressive Model||0.56%|
|Thorntons Adventurous Model||0.50%|