Baggot Multi Asset Portfolio

Baggot Multi-Asset Portfolio (“BMA”) is a Diversified strategy which aims to provide positive annualised investment returns on a medium to long term basis, while managing the portfolio within its risk parameters.

This investment strategy can invest in a range of asset classes such as Bonds, Equities, Property, Commodities and Cash. This is a medium risk strategy with the objective of having a moderate investment allocation to higher risk assets such as Equities, Property, and Commodities. We review and make changes to our asset mix regularly, in line with our Investment Framework.

Baggot Investment Philosophy:

  • Avoid country specific concentration risk.
  • Invest in relatively inexpensive assets.
  • Achieve positive returns on a longer term basis, while maintaining a medium risk profile.

 

To execute this strategy, Baggot Investment Partners (“Baggot”) have entered into a research and investment advisory agreement with Conexim Advisor Support & Services (“Conexim”), who provide dealing and related services on and for your account. Under this agreement, Baggot provides ongoing research and asset allocation advisory services, which Conexim execute on a discretionary basis. Under this arrangement, Baggot also provide assessments of the suitability of the strategy for individual investors, which Conexim rely on when providing the portfolio management service.

Investment Style:

BMAP is an Active Multi-Asset Strategy with a focus on Value (higher risk assets such as Equities, Property & Commodities) and Safety (lower risk assets such as Bonds).

Strategy Advantages:

  • Lower cost, no lock-up, professionally managed.
  • Not weighted to traditional benchmarks (MSCI).
  • Avoids high concentration risk in most expensive major developed market (US).
  • Focuses on the future being different to the past because central bank policies have changed. Our framework shows the greatest risk in the future (completely different to last 10 years) is debt. Small & Medium Sized Companies are carrying less debt than Bag Cap Companies. This is why our allocations are focused in that space.
  • Bonds are an important diversifier in any multi-asset portfolio. But our framework also tells us that the future looks different for bond investors than it has in the past 10 years as well, which is why we are invested in a combination of shorter duration bonds, inflation linked bonds and bonds that generate yields in excess of inflation (EM). Most non-Euro denominated exposures are EURO-Hedged, thereby decreasing FX translation risk.
  • Strong Diversification.

 

Investment Framework

Three Major Drivers

  1. Valuation Analysis– We seek to invest in assets that are relatively inexpensive compared to other “like for like” assets. Cheaper asset prices carry a “higher margin of safety” as legendary investor Ben Graham would have said. Based on historical evidence, they also offer significantly higher returns over the long run.

 

  1. Fundamental Economic Analysis– Global central bank policies, Interest rates, Inflation and Growth rates, Employment trends, Government tax policy, budgets and debt levels, Regulatory changes, Corporate debt levels, Demographics and Personal savings rates.

 

  1. Chart Analysis– We monitor price, demand and momentum for important changes and react to both positive and negative changes on an active basis.

 

Fact Sheet Document

Contact Us

If you wish to invest in this product please contact us at info@baggot.ie or call 01 699 1590

This product is delivered in conjunction with:

Asset Allocation

 

 

Asset Allocation

Equities

58%

(Including Property & Commodity Sector Equities):

Bonds:

42%

* Subject to change

Equities Regional Distribution

(Excluding Commodity Equities & Property Equities)

Europe:

28%

UK:

4%

Japan:

4%

Latin America:

4%

Commodity Equities Distribution

Gold:

8%

Silver:

2%

Oil & Gas:

3%

Property Equities Distribution

Real Estate Holdings:

5%

Bond Regional Distribution

Europe (Inflation linked/Shorter Duration):


25%

Global (Inflation Linked):

10%

Emerging Markets:

7%


SIMULATED PERFORMANCE AND BACKTESTING

The graph, performance and risk outcome figures below are derived from internal Baggot testing using Yahoo Finance
(Strategy) and  
Standard Life Investments Global SICAV – Global Absolute Return Strategies Fund 
ESMA 4:    7.74% Annualized / 9.02% Volatility

 


Strategy Cumulative Performance

 

YTD 2017

Last 12 months*

Last 3 years*

Last 5 years*

Baggot Multi-Asset Portfolio (BMA)

+5.88%

+11.68%

+15.25%

+35.16%

Benchmark,
Standard Life Investments Global SICAV – Global Absolute Return Strategies Fund


-4.74%


-0.64%


-5.51%


+7.47%


* Calculated using quarterly return data