Charles Stanley Passive MAPs

The Passive portfolio range is designed to combine the best of active asset allocation with the best of passive investment.

At the core is a dynamic asset allocation process, which means making sure the asset mix in your portfolio changes in line with varying market conditions. Charles Stanley then use the lowest cost and most efficient index-tracking passive funds to gain exposure to each asset class.

Making intelligent adjustments to a portfolio’s asset allocation has been shown to have the biggest impact on long-term returns. In our view, choosing individual stocks and shares normally leads to higher costs, increased concentration and underperformance. With this in mind, instead of ‘stock-picking’, Charles Stanley uses index-tracking funds and Exchange Traded Funds (ETFs) which are designed to give the investor most or all of the return of a whole asset class at very low cost. Keeping costs low is a sure way to give your capital a better chance to grow over time.

Each Passive portfolio has a targeted level of risk designed to cater for different risk profiles. The portfolios aim to exploit the continually changing opportunities offered by different asset classes around the world. The dynamic asset allocation process combines long-term investment in assets most likely to meet investor needs, with shorter-term tactical decisions which can protect their assets in times of stress.

The portfolios are invested primarily in index-tracking funds and ETFs but may also hold other suitable transferrable securities or units in collective investment schemes as well as cash, cash funds or cash ETFs. We have sophisticated risk management systems in place to ensure that the aggregated investment performance of the underlying holdings in each portfolio is in line with each portfolio’s risk and return targets.