Gordon Smith
Partner, Fund Research

What is it?

This service is focused on delivering lower volatility for investors whilst providing a modest medium to long-term total return. Delivered through a portfolio of funds, it will focus on alternative investments outside of traditional equity and fixed income securities, and those exhibiting lower volatility than direct investment in the equity markets.

Why Killik & Co?

As an independently owned investment house we are free to develop investment ideas and strategies internally without conflict of interest, giving us access to the best funds in the marketplace.

Our in-house team of expert analysts carefully select the funds that provide access to a number of alternative investments and investment strategies, such as real estate, infrastructure, speciality lending, long/short equity, global macro trading, and asset-backed securities.

Who is it right for?

The Alternative Allocation Service will generally be used by those seeking to diversify an equity portfolio into other asset classes, so as to lower the overall level of risk of the portfolio.

The Service

The Alternative Allocation Service aims to provide a modest medium to long-term total return via a portfolio of funds focused on ‘alternative investments’ outside of traditional equity and fixed income securities. The service will aim to allocate to investment strategies exhibiting low correlation (the degree to which two assets move together) to equity markets. An allocation to the service therefore aims to provide useful diversification benefits to portfolios. Underlying investment strategies will generally exhibit lower volatility (price fluctuation risk) when compared to global equity markets, and gaining exposure to these investments will likely be relevant to clients seeking to diversify an existing equity portfolio lowering the level of risk of the portfolio in terms
of the variability of overall returns.

Investment Process

Our expert analysts curate investments and investment strategies that are likely to display low levels of correlation to equity market movements for this service. The strategy will invest in a range of funds, incorporating some of the world’s leading asset managers, all of which are specially selected and monitored on a continuous basis by our dedicated Fund Research team.

Our screening and selection process goes beyond just financial analysis, and includes interviews with the Fund Managers as well as ongoing contact with them, ensuring any change to the investment case can be quickly identified and underperformers can be replaced where necessary.

These carefully selected funds can include real estate, infrastructure, speciality lending, long/short equity, global macro trading, and asset backed securities. The exact number of underlying investments will depend on various factors including your individual circumstances, but a typical portfolio is likely to contain a range of ‘alternative investments’ each with differing performance drivers.

The Alternative Allocation Service is likely to include closed-ended funds (e.g. investment trusts) and Real Estate Investment Trusts (REITs), used to gain exposure to less liquid assets, as well as more conventional open-ended funds (e.g. unit trusts).

Risks To Be Aware Of

As is the very nature of investing, the value of your investments will rise and fall over time. We devote our time to sourcing the very best investments to meet your objectives, however please do not assume that past performance will repeat itself and you must be comfortable in the knowledge that you may receive less than you originally invested. Some funds will hold securities that are not denominated in sterling, leading to fluctuations in the portfolio value due to exchange rate movements.

Closed-ended funds may borrow to invest, thus adding to their overall level of risk, and may trade at a discount to their net asset value for prolonged periods of time.

Find Out More

Contact us on +44 (0) 20 7337 0777 or send us an email at info@killik.com to find out more about our Alternative Allocation Service or alternatively fill out the form below to download the brochure.

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