Hardy Managed Portfolios, understanding our investment DNA

The Casterbridge Hardy Managed portfolios provide Financial Advisers and their clients consistency and conviction in a crowded MPS marketplace.

What does the current managed portfolio landscape look like?

Is the current managed portfolio service (MPS) market all looking a bit too generic? The use of MPS has grown exponentially over the last few years, and according to Defaqto, there are over 2,700 managed portfolios to choose from, across defensive, cautious, balanced, growth and adventurous comparators.

But look under the bonnet and most of the MPS offerings from the larger houses are startlingly similar in composition. Why is that? Two reasons. The first is the increasing prevalence of lower cost passive-only MPS ranges, built on the belief that the less clients pay for their MPS, the better. We’ll explore in more depth why this ‘race to the bottom’ on MPS fees and charges risks leaving clients worse off at a later date.

The second reason is that the nature of large MPS propositions is to be in close competition with one another. When it comes to asset allocation and managing risk, it’s better business to jockey for position, hug benchmarks and for performance to stay close to the rest of the peer group. That determination to follow the herd makes sense in rising markets. But what will happen when returns are harder to come by? Followers cannot become leaders overnight, and passive-only won’t always be the right answer.

We don’t manage long-term money with short-term thinking

What makes the Casterbridge Hardy Managed Portfolios distinct?

At Casterbridge, our core belief is that our focus should be on clients, not competition. In other words, “we don’t manage long-term money with short-term thinking.” We are strategic in our approach, so we invest based on where our experience, research, and insights take us, not where our competitors are.

We are conviction-led, but that doesn’t equal being contrarian by nature; it just means we choose to filter out the ‘noise’ of competing with the peer group, rather than being guided by it. If our portfolios have a dissimilar asset allocation versus our peers, or hold funds less commonly found within mainstream MPS offerings, it means we’ve spotted an opportunity in the market that hasn’t yet been fully recognised by the wider crowd.

Because isn’t that what active fund management should be?

How we position client portfolios

The conviction that underpins the Hardy Portfolios comes from our Head of Strategy, Julian Menges, with investment experience spanning four decades he can also draw on a team of investment professionals in London and Salisbury. The team’s client-led investment style lends itself to considering how broader macroeconomic themes are likely to play out over the medium to long term.

This approach means portfolios are positioned to capitalise on the longer-term direction of travel, without getting distracted by shorter-term ups and downs. We do this because clients want to be certain of reaching their own destination, they don’t worry about the journey other investors take.

Talk to us about the Hardy MPS range

We manage seven Hardy MPS portfolios targeting long-term capital growth or income whilst managing risk from predefined risk ranges. The range is available across 10 leading platforms, giving you full visibility over your clients’ portfolio holdings and access to bespoke reports and support services.

So, whether your clients are after long-term growth, regular income or a combination of the two, a Hardy portfolio will feature carefully-chosen assets designed to meet their investment objectives, giving them the time and space to live the life they want.

To talk to us about the way we manage MPS money, our thoughts on current market trends, or to arrange a meeting, call 0800 644 4848 or use the contact form link below…