Investment process

Each MyFolio fund aims for the highest possible total return achievable for your chosen risk level. To achieve this, our process contains four key steps.

MyFolio investment process

1. Strategic asset allocation

Choosing the right mix of assets for the risk you want to take. We seek to create the most efficient mix of assets that will help deliver the best possible return for each risk level. We work closely with Moody's Analytics, world-leading experts in risk modelling solutions.

2. Tactical asset allocation overlay

Selecting which of those asset classes to favour over the shorter-term. While step 1 forms our long-term asset mix, we can fine-tune the allocation to take advantage of shorter-term investment opportunities. This lets us increase exposure to those markets we favour and reduce exposure to those in which we have less conviction. This step is carried out by our highly experienced multi-asset investing team.

3. Fund selection and portfolio construction

Choosing the right funds in each asset class bucket and optimally blending those funds together. Next, we select the best blend of individual funds to go into each MyFolio portfolio. We narrow down the available fund range to find funds that we believe have the best potential returns while meeting our strict selection criteria. We then assess each fund’s potential for delivering the best risk-adjusted performance.

4. Rebalancing and review

Ensuring the portfolios are meeting risk and return expectations. The final step in our process is to ensure the MyFolio funds continue to deliver the desired risk and return outcomes for investors. To do this, we regularly rebalance each portfolio in line with step 1 – tactical asset allocation – and undertake regular portfolio reviews. We also review each underlying fund we hold and visit management teams to ensure they continue to meet our rigorous selection requirements. We swiftly replace any fund that is no longer considered suitable.

We also have a comprehensive investment risk and governance process to audit decision making, ensuring the investment team adheres to the MyFolio investment guidelines and delivers risk and return in line with expectations.

Risk warning
Risk warning - Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.