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Brunswick Portfolios benefit
from deep diversification

 1. Spread - by using a significant number of Investments

 

Investors benefit from the significant number of individual investments in both the Brunswick Diversified Portfolio and the Brunswick Growth Portfolio. Typically they each have 25 - 27 investments, (see example) with approximately 6,000 underlying investments in each portfolio. There is very little duplication of actively managed investment across both portfolios. A blend of both portfolios therefore further enhances diversification.

 

2. Spread - across many Asset Classes

Across the Diversified and Growth Portfolios we are currently invested in 13 different assets classes.

The pie chart of the Brunswick Diversified Portfolio in
Principle 3 shows how 12 different asset classes were spreading risk for investors as at 30/06/2022.

3. Spread - within Asset classes

The UK Equity (Shares) allocation selected by the Investment Manager for the Brunswick Diversified Portfolio was spread across seven different Investments as shown in the table below as at 30/06/2022.

These were selected from investment houses who specialise in different parts of the UK equity market and who have different investment styles.

(see example)

Brunswick-INVESTMENT-FUND-DIVERSIFICATION-CHART-31_04_21.png

4. Spread - by using both Active Investments AND Passive investments

This wide spread of investments uses both active and passive investments and gives our managers the opportunity to gain the best of what each of these two styles of investment can contribute to performance.

 5. Spread – by using different investment vehicles

Investors using the Brunswick Investment Solution benefit from the freedom our Investment Managers have to use any approved investment vehicles to give them access to different markets and asset classes.

As at October 2020, the Brunswick Diversified and the Brunswick Growth Portfolios were using five different investment vehicles. Each of these has particular characteristics such as cost or availability of an asset, which the manager requires.

For example:

Investment Trusts - Aberforth Smaller Companies Trust for access to UK Equities.

ETFs (Exchange Traded Fund) - i Shares Automation and Robotics UCITS for access to Global Equities.

Direct Holdings - UK 0.125% index Linked Gilt 22/03/29 for access to UK Inflation linked Government Bonds.

Indexed Tracker Funds - i Shares Core S&P 500 for access to US Equities.

OEICs (Open Ended Investment Companies) - Digital Stars Europe for access to European Equities.

This diversification of investment is not fixed. It is reviewed daily and adjusted as explained in section
Principle4.

In the Brunswick Portfolios the maximum proportion allocated to each asset class, and to any one investment is strictly controlled.

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