Investment Approach

For most investors, selecting a basket of well diversified assets is far more important than individual stock selection. Risk can be significantly reduced to the downside whilst still maintaining attractive portfolio returns . The following Core-Satellite approach is a way that investors can get the benefits of a passive style of investment with a strategic asset allocation approach for the Core, whilst also using tactical asset selection to boost potential capital growth of the portfolio in the Satellite. The Future Trends Core-Satellite ETF portfolio takes an 85% allocation across the Core ETFs while allocating the remaining 15% across key future themes that show the potential to benefit from the changing global landscape.

What is Core-Satellite Investing?

Core-Satellite investing is a strategy that uses broadly diversified index funds to gain exposure to the movements of the market, whilst putting in place smaller thematic based investments in an attempt to boost the returns of the portfolio. This style of investment is the middle ground between wholly passive index exposure (strategic asset selection) and active portfolio management(tactical asset selection) as it allows for small changes to be made to the satellite portion of the portfolio to boost portfolio performance. While the satellite components of the portfolio may be changed in the future, we have strategically selected thematics for the satellite that offer growth potential across multiple sectors and geographies over the long term. As such we expect our satellite allocations to remain relatively passive as well.