A Unique Approach
to Asset Management
As a family run business, we understand the delicate balancing act of managing investment growth and protecting capital. In our opinion, it is more important for us to deliver stable investment returns over the short, medium and long term, rather than being a star performer one minute and a fool the next. No one likes shocks, and the need to deliver on agreed outcomes and balance the risks forms the foundation of our centralised investment proposition.
Through our sound and robust investment process, we work with Advisers across the UK to achieve their clients’ goals without taking excessive risk throughout the market cycle.
Our Approach to Asset Management
Delivering the Outcome
At OCM, our Outcome Based Investing (OBI) investment philosophy focuses on dynamic, cyclically adjusted asset management, which aims to deliver the pre-defined “Outcome” at an agreed level of volatility. We aim to help our clients achieve their long-term goals by making use of our nimble and proactive asset management team, which focuses on what the client is trying to achieve, rather than beating the markets.
Focus on the Macroeconomic Environment
We focus on the macroeconomic environment and have a clear and concise understanding of how asset classes and fund managers have historically performed in similar periods in history. Big data coupled with our experience enables us to identify those assets that are most likely to provide a positive contribution to the portfolio performance in any six-to-twelve-month period.
Our Model Portfolio Offering
Our partners have a choice of four different portfolio suites, all offering model portfolios with targeted outcomes on a five to seven year rolling basis from 4% per annum to 9% plus per annum. The Portfolios are managed with an equity allocation of between 0% up to a maximum position of 85% equity in our highest risk models, and will invest in the whole of the investment universe, using passive and active strategies when appropriate.
”In concentrating on the “Outcome”, this focus provides a discipline that drives our research and understanding of the markets, and constantly reinforces what we are doing and why. This discipline stops us trying to beat the market and keeps the client truly at the centre of everything we do.
Jason Stather-LodgeCEO & Founder
Our Philosophy
The OBI strategy uses Quantamental Analysis (QA) which applies a mixture of fundamental and quantitative analysis of data from many sources to produce an objective assessment of market data. We use these tools to analyse the global economic situation alongside individual cycle development and the extent to which we agree with the market’s valuation. In doing so, we are able to focus on delivering the ‘Outcome’ (i.e. the agreed annualised return target after fees and charges) for the client, keeping volatility within agreed limits. Sounds complex? It is, but we’ve been following OBI principles for many years to good effect. Our investment decisions are driven by data and sound judgement.
While we do follow Modern Portfolio Theory (MPT), OBI challenges the long-established assumption that you cannot make strategically timed asset allocation decisions, and that all investors are better off investing and staying invested in a fixed portfolio of assets over the long term. We believe that by cyclically adjusting our asset allocation based on the position in the market cycle, we can produce returns in line with the outcome expectation at a lower level of volatility than the market. In doing so, we do not try to beat the market, instead we remain focused on delivering the portfolio expected outcome within the proscribed parameters of risk.
Our Strategy
Outcome Based Investing
We manage our portfolios as standalone models with clear objectives. Our partners allocate their clients individually to one at a time and have the full flexibility to switch between them based on the following:
- The client’s desired outcome.
- The client’s indicative / emotional acceptance of capital losses over a 12-month period.
- Our analysis of where the market is in relation to perceived capital at risk.
- A house view of expected volatility and short / medium term momentum
Alongside our flagship suite of OBI Active models, we offer a Sustainable ESG portfolio range following the same OBI investment principles for more ethically conscious investors, a Passive OBI portfolio range for those with greater focus on ongoing portfolio management costs, and a suite of Long Hold portfolios for those who are happy to accept full market volatility.
To understand more about our strategy and the performance / volatility of the underlying portfolios over different time periods, please get in touch with the team at dfmsales@ocmassetmanagement.co.uk.
Quantamental Analysis
Quantamental Analysis uses a mixture of fundamental and quantitative analysis of data from many sources, both internal and external. Each has its advantages, with fundamental being more forward looking, economically driven and subjective while quantitative is more backward looking (and so can be back tested), and is an objective assessment of market data. We use these tools to analyse the global economic situation and individual cycle development and the extent to which we agree with the market’s valuation.
Our Comprehensive MPS Offering
”By taking a risk-managed approach to portfolio management, we are able to reduce the number of shocks within the portfolios, delivering real value to clients over the long-term.
Georgina StoneDeputy CIO
Hate forms?
Give us a call on 01604 621 467
OCM Asset Management HQ
St Clair House, Old Bedford Road, Northampton NN4 7AA
T: 01604 621 467
E: dfmsales@ocmassetmanagement.
Important Information: Past performance cannot be used as a guide to future performance and the value of your investment will fall as well as rise in value. You may not get back all of your investment and the final value of your investment will depend on the performance of your portfolio. The actual performance of an individual client’s portfolio may differ due to different funds being used and being restricted in relation to certain asset allocations. Performance figures quoted include fund manager charges but exclude adviser, discretionary, custodian and switch charges. Unless stated, income is reinvested into the portfolio. The information contained in in this document is for information purposes only. It does not constitute advice or a recommendation or an offer or solicitation for investment. OCM Asset Management is a trading name of OCM Wealth Management Limited, which is authorised and regulated by the Financial Conduct Authority. FCA Registration No: 418826.
