Rain or Shine Portfolio

What?

The Rain or Shine portfolio invests in four assets classes:

Equity.
Bonds.
Precious metals.
Cash.

The allocation to each asset class is determined at inception and rebalanced annually or if one asset class reaches a defined level. Each asset class has a clearly defined investment process, to ensure a consistent and persistent portfolio construction strategy.

Historically proven financial theories built into the asset allocation process, for example:

Mean reversion.
Compounding.
De-correlated assets.
Dividends as a source of investment return.
Diversification with portfolio construction.

Why?

In life, everyone has ups and downs. Investment has the same peaks and troughs. Reducing the magnitude of the downside increases the long-term investment upside return.

The asset classes selected provide diversification to reduce the volatility and downside. In combination, they provide economic diversification as their returns are de-correlated over the business cycle.

The philosophy of compounding provides the framework on which to build a profitable portfolio. It is the key to long-term investment returns.

What you need to know

Why Mole Valley Asset Management?

Expertise in retail and institutional investment.
The size of MVAM means that we can invest in the best companies regardless of their size, unlike larger investment houses.
Fees are fair and transparent, and we align our rewards to the success of our product.

Positives

The asset classes selected provide diversification to reduce the volatility and downside.
Consistent repeatable strategy.
Money back usually within a week of receiving a redemption request.

Risks

This investment is suitable if you are looking for some income from your assets and expect to hold bonds as well as equity.

You should not buy this portfolio if:

You cannot tolerate periods where your portfolio is at risk of loss.
You are looking for significant returns versus benchmark indices.

We say…

This is suitable if you are looking for some income from your assets and expect to hold bonds as well as equity.

If you are looking to invest but you are feeling anxious about the risk, then this might be the portfolio for you. You will have the peace of mind that your money will not disappear in the hard times and you will make some return in the good.

Frequently Asked Questions

Can I customise my portfolio?: We are a discretionary investment manager which means that we build, manage rebalance your portfolio for you.

When you first create your account, we will discuss an appropriate portfolio based on your financial situation, risk tolerance, financial experience and age.

Once we have selected a portfolio with you, the only way to further customise it is by changing your asset allocations. If you choose to overlook our recommendations, we will discuss these with you to alert you that you may not have selected the most optimal portfolio.

We will periodically ask you to provide us updates on your financial situation, risk tolerance and financial experience – if there have been any significant changes, we will determine a new optimal portfolio for you.

How does diversification benefit my portfolio?: It makes sense to diversify your investments because no single asset class performs best in all economic environments and different asset classes tend to react differently to the same event.

‘Don’t put all your eggs in one basket’ is sound investment approach.

Although we would go further and say diversification is the most important factor in achieving long-term investment goals, as it reduces the risk associated with a given expected return.

Thus, diversification enables you to achieve a higher return for the same level of risk.

Can I invest monthly into my portfolio?: Yes, you can. With MVAM, you can invest via a one-off payment via bank transfer or set a Direct Debit for regular/monthly payments.

With regular payments, you increase your saving discipline and you can build up your wealth over time. Any payments to your account will be invested in your chosen portfolio and we will always monitor your portfolio to ensure it continues matching your financial situation and investment goals.

Can I pick stocks or choose what I invest in?: No, that’s what we’re here for. We build your investment plan based on what you tell us about your attitude to risk with money, how much you have to invest, and by when you hope to reach your savings goals. Then we monitor your investments to make sure they’re on track.

Warning

The value of your investment in this portfolio and the income from it may go down as well as up, and you may not get back what you invested.