Two years in the making and it’s finally here, the RTS Investment Strategy.
When I started RTS Financial Planning I had two major goals in mind for clients:
- Lower costs.
- Better performance.
Since the start we have offered lower charges and remain in the minority of Financial Advisers charging fixed fees. Now we are delivering on the second goal with our own RTS Investment Strategy.
How the RTS Investment Strategy works
We have built five investment portfolios that are appropriate for different levels of risk. Each portfolio will contain an element of low risk investments, medium risk investments and high risk investments. The proportion allocated to low, medium or high will depend on your attitude to risk.
The overall portfolio will be made up of around eighteen funds which ensures risk is managed by diversifying across different assets, geographic locations and sectors.
The individual funds will be a mix of active funds and index tracker (passive) funds. We will only be using active funds where we believe there is a credible reason to expect they can outperform the market and that this has been tested.
Each month the RTS Financial Planning Investment Committee will meet to review the portfolio, economic and market conditions. Allocations to assets and locations will be tweaked where research and analysis tells there is high chance of better performance.
Every quarter we will provide clients with a Quarterly Review. This review will provide performance information for the RTS Investment Strategy along with recommendations for any asset allocation of fund changes. Clients will be asked to submit their agreement to any changes before we can make them.
On an occasional basis it may be prudent to communicate a recommended change in between quarterly reviews if the markets are changing fast.
Who is the RTS Investment Strategy for?
The RTS Investment Strategy is for RTS Financial Planning clients who prefer to have their investments managed more closely with regular updates.
It is appropriate for clients with investable assets of £300,000 plus.
Reasons to use the RTS Investment Strategy
We guess the first question you will be asking is what type of performance can you expect and will it beat the market?
Well of course we can’t predict the future so there is no way of knowing how the RTS Investment Strategy will perform going forward.
What we can say is that it has been rigorously tested over the last 2 years and we wouldn’t have built the service (at a significant cost to us) if we didn’t believe in our ability to deliver better client returns.
The back-tested returns certainly look impressive.
The graph below shows the last 5 years back-tested returns for a ‘medium’ risk portfolio compared against the ‘medium’ risk sector as defined by the Investment Association Mixed Investment 40%-85% Shares.
Over the last 5 years the cumulative return of the back-tested ‘medium’ risk RTS Investment Strategy was 42.8% compared to just 17.5% for the sector.
The chart below shows the returns over 10 years.
A = RTS IS 50/30/20 portfolio
B = IA Mixed Investment 40%-85% Shares
Over the last 10 years the cumulative return is 120% for the RTS Investment Strategy vs 65% for the sector.
That means a £500,000 investment in the RTS Investment Strategy 10 years ago could have been worth £1.1 million today compared to £825,000 for the sector.
I have many years’ experience running investment strategies for previous Wealth Managers and still sit on the board for a boutique investment fund manager. I am also one of the most qualified Financial Advisers in the country.
When it comes to our Investment Committee we receive input from a number of professional experts and buy in data from specialist software houses with investment data that is not available to the public.
If you would like your current portfolio assessed to see how it compares and would like more information on the RTS Investment Strategy then why not take advantage of our free 15-minute call. You can speak to a Chartered Financial Planner who will listen to your situation, give you an outline of what you need to consider and guide you in the right direction.
Risk warning:
Stock market linked investments and any income from them, can fall as well as rise and is not guaranteed. Any figures quoted are for illustrative purposes and should not be taken as a forecast or guarantee. Past performance should not be seen as an indication of future returns and clients may get back less than they have invested.
