Matching Funds to Asset Classes
When Integra look at the funds within your portfolio we check to see whether they still meet our original expectations.
We access a number of independent investment research facilities to help us choose those funds which, we believe, have the greatest potential for providing an above average return, without incurring an unacceptable level of risk.
Recent past performance on a year-by-year basis is always examined and, if a fund can consistently demonstrate above average returns, then clearly its long term performance will be significantly above average. Whilst past performance does not guarantee future performance, by looking at annual performance as well as overall returns, we can get a measure of a fund's consistency.
The research priocess also examines a fund’s risk adjusted performance, using various organisations to carry out in depth analysis into fund management groups, their various managers and the systems they employ. For example OBSR (Old Broad Street Research )carries out more than 5000 fund manager interviews each year, yet they will give ratings to only 250 funds. A single A rating from OBSR would only be given to a “highly commendable” fund and their highest rating (AAA) is a indication of true excellence.
There is no guarantee that any chosen fund will achieve above average returns, but we believe that the research process gives us confidence when selecting each of the funds.
Over time, a Fund manager will buy and sell shares in the companies in which his Fund invests. For example the manager of the Fidelity Special Situations Fund may decide that he no longer wants to hold shares in, say, Vodaphone and that he would rather invest in, say, Shell Oil. It is important to be aware of such changes, so we can ensure your investments remain diversified.