Check out the Latest NorthStar Investment Results
One of the key services we provide our clients is investment management. As well as helping our clients protect the wealth they have already accumulated, it’s also crucial to help them grow their wealth over time.
We have developed a unique investment approach underpinned by our own investment philosophy based on 8 core principles and backed by Nobel Prize winning research.
This helps our client’s investments deliver the maximum possible returns while closely monitoring and minimalize risks.
We run eleven investment portfolios for our clients. Each one is designed for a specific purpose and within strict risk parameters. Generally, our higher risk portfolio’s will perform better in rising markets but may also fall more when markets go down. This is why we carefully assess the risk tolerance of all our clients and keep this under close review. This allows us to recommend the right portfolio so our clients can achieve their long-term goals.
We also run portfolios aimed at generating a regular income as well as ‘ethical’ portfolios which invest in companies committed to environmental and social good. The final portfolio in our range is our ‘Safety’ portfolio – an ultra-low risk portfolio designed for capital preservation and very low volatility.
How the NorthStar portfolios performed
The chart below shows a comparison of the NorthStar growth portfolios since inception (01.01.15) to 01.08.18. Also shown on the chart is the NorthStar Safety Portfolio.
The chart below shows a comparison of the NorthStar income & growth portfolios since inception (01.01.15) to 01.08.18. Also shown on the chart is the NorthStar Safety Portfolio.
How the returns compare
The chart below shows how the NorthStar portfolios have performed against their benchmarks over the past 12 months (August 2017 to August 2018).
You will see that most have performed ahead of their benchmark. In absolute terms, the past twelve months has been a fairly good period for most investment markets and our clients have enjoyed some strong returns.
We have achieved these returns at the same time as minimising investment costs, providing our clients with compelling returns after accounting for charges. Our clients enjoy better returns, better advice and a better level of service. We deliver all this at a lower price than many of our competitors.
Let’s look in detail at the performance of each portfolio:
Investment performance background
The NorthStar Investment Committee meet every six months to review the NorthStar portfolios and make recommendations to ensure they are optimally positioned for the months ahead. The committee’s key points during this review were:
- Global growth: Many regions continue to see economic growth with relatively buoyant consumer demand, strong corporate earnings and a largely benign investment environment. In aggregate, global growth is expected to strengthen this year if trade in not restricted further.
- Investment markets: Most investors made gains during the past six month although the returns have not been as strong as in the recent past. Most Western stock markets rose while the majority of those in Asia and many emerging markets fell back.
- Brexit: There has been little to reassure markets over Brexit in the past six months with many issues remaining far from resolved. The threat of a ‘no deal’ scenario remains plausible but unlikely.
- Risk management: The key market risks continue to surround geo-political events. The two key issues remain as Brexit, and the potential for an escalation of tariff disputes into a full ‘trade war’.
- Diversification benefits: Investors must remain diversified to mitigate the impact of any financial shocks or significant change in market sentiment.
- Inflation: In many regions, the threat of inflation is increasing which may lead of a quickening of interest rate rises and reduction in consumer demand.
- Performance: All NorthStar portfolios posted positive returns over the past six months. Relative to benchmarks, those at the top and bottom of the risk range performed best.
- Outlook: Many markets are currently caught between two competing factors. In aggregate, economic and business fundamentals in many areas are positive but the threats from a global trade war, inflation and political events such as Brexit continue to dampen expectations.
The benefits of our investment approach
The NorthStar portfolio range is a key part of our complete investment management solution. An expertly crafted range of portfolios exclusively for NorthStar clients. Here’s a reminder of the key benefits this provides:
- Optimised portfolio construction. Using advanced modelling techniques, we ensure our portfolios are fully optimised. By blending the very best funds, we create portfolios that are greater than the sum of their parts.
- Effective risk management. Every NorthStar portfolio is constructed within specific risk parameters so you can be confident that you will never be exposed to unnecessary investment risks.
- Academically supported philosophy. Our investment philosophy and construction process is based on many years of empirical evidence and Nobel Prize winning research, helping us provide the very best investment portfolios.
- Low-cost investment solution. We utilise the best value investment funds available to help us lower the cost of investing. We then charge just 0.6% a year to provide you with a full investment management service.
- Diversified investment approach. We don’t believe in putting all our eggs in one basket. We create portfolios that utilise a broad range of asset classes to reduce volatility and improve investment returns.
- Ongoing monitoring & reviews. We never take our eye off the ball when it comes to our portfolios. We continually monitor and regularly review all portfolios to ensure they always deliver the best outcomes.
- Smart portfolio rebalancing. Every NorthStar portfolio is rebalanced every 6 months to ensure it always remains optimized, efficient and on-track to deliver your investment objectives.
- Complete flexibility as standard. You are never tied into to any NorthStar portfolio. You can switch between portfolios, change your regular contributions or disinvest any time you like – all at no cost.
We’re pleased with the performance of the NorthStar portfolio range and the returns we’ve delivered for our clients over the past twelve months.
If you would like more information on the NorthStar portfolios, our investment philosophy or would like to chat about how we can help you make the most of your existing investments, please get in touch.
Performance data shown are on a bid-to-bid basis, with income reinvested and do not take into account platform or advisory charges. Figures show the performance of current funds and do not take into account fund switches made within the portfolio. All performance data are rounded to the nearest 0.1% so small rounding errors may occur. Data correct as at 01.08.2018. Source: FE. The value of investments and the income from them can fluctuate and investors may not get back the full amount invested. Past performance is not necessarily a guide to future performance. The tax treatment of investments depends on individual circumstances and is subject to changes in tax legislation. Figures are provided for illustrative purposes only and their accuracy cannot be guaranteed. Information provided should not be relied upon in isolation when making investment decisions and does not constitute advice or an offer to purchase any investment or product. Please contact us for more information on our range of portfolios.