SMARTfunds
Old Broad Street Research (OBSR)
Established in 1999 by Richard Downs and Richard Romer-Lee, the OBSR Executive Directors have since been joined by Nigel Whittingham. Between them they have over 75 years of directly relevant experience and are all well known and respected in their fields of expertise.
OBSR's research philosophy and approach is not only long-established but is also developing over time in order that it remains robust and relevant in an ever changing industry. OBSR's research is respected by fund managers, product providers and professional intermediaries alike, with OBSR Fund Ratings widely acknowledged as an independent mark of quality.
OBSR's philosophy is grounded in the belief that a qualitative approach is critical to providing forward-looking research and opinions. OBSR believes that a qualitative understanding of a manager, gained through face-to-face meetings, is the only way to understand how a fund is managed, what it sets out to achieve and the prospects of those objectives being met in the future. It also provides a meaningful framework to assess historical trends and returns. While OBSR are committed to a qualitative research approach, they also acknowledge that it needs to be supported by quantitative analysis to either validate or question our understanding of a fund's characteristics. This is particularly true where they are looking to assess how a fund is likely to perform in different market conditions.
In September 2008, OBSR became Investment Adviser to SMARTfund Administration for a range of five Risk profiled Managed Portfolios.
The Managed Portfolios from OBSR
Asset Allocation Approach
Within each of the SMARTfunds, asset allocation is done at two levels to benefit the client.
Step 1 - Strategic Asset Allocation
Firstly asset allocation is done at a strategic level, based on the client's appetite for risk, by Barrie & Hibbert, specialists in matching strategic long term asset allocation to different risk profiles. This first step in asset allocation ensures that the SMARTfund portfolio's risk and return profile, over the long term, matches the particular appetite for risk and expectations - a key consideration in Treating Customers Fairly.
Step 2 - Tactical Overlay
In order to enhance returns over the long term, once the strategic asset allocation has been determined, OBSR provides a tactical overlay to the strategic asset allocation. This enables the OBSR Managed Portfolios to take advantage of shorter term shifts and trends in the market, which can enhance portfolio returns.
For example, in the credit markets, at certain times, investment grade fixed income securities become highly attractive. When this is the case, OBSR would look to enhance returns by specifically emphasising this area through the tactical overlay. This tactical asset allocation will be focused on shorter tem opportunities, but will not alter the risk profile of the portfolio, as determined by the long term strategic asset allocation.
This two step approach to asset allocation enables OBSR to enhance returns, whilst maintaining the appropriate risk profiles in the portfolio, over time.
Fund Research and Selection by OBSR
OBSR's rigorous and disciplined research and selection process, is used in the SMARTfunds to ensure that, at all times, the funds which are held in the portfolios are, in OBSR's view, the most appropriate, given the intended risk and return profile of the SMARTfunds and the current market trends.
In a nutshell, these Managed Portfolios from OBSR are intended to provide clients with the opportunity for an investment which matches their appetite for risk, while enhancing returns through tactical asset allocation and the selection of the most appropriate funds.
Contact OBSR
To find out more about OBSR, please visit www.obsr.co.uk or call them on 020 7029 3660.