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From early beginnings, we realised that it was becoming not only too dangerous for clients remain in portfolios of individual stocks run along old stockbroker lines, but also too cumbersome and costly for their needs. We therefore established a range of collective investment schemes, the CH fund range, to act as core building blocks for clients’ portfolios.

With track records of ten years or more, CH funds – which are essentially baskets of stocks - provide clients with properly diversified exposure to the main market sectors that they need, for example global equities or corporate bonds. We offer complete ‘look-though’ to our clients so that they can ‘touch and see’ exactly what they are invested in, just like a portfolio of directly-invested stocks.

In summary, each fund acts as a directly managed ‘sub-portfolio’ within their overall portfolio. Some further points worth noting:

Risk Management - By using  CH funds for the majority of clients’ portfolios, it means that we can properly understand the risks that are taking on their behalf. Thus we minimise the use of funds run by other managers. We don’t see how we could truly claim to be ‘managing’ the overall risk for our clients if we abdicate that responsibility to others.

Other Advantages - Risk management aside, for reasons of tax-efficiency and cost-effectiveness, it makes sense to use our funds. This is because transactions within funds are not subject to Capital Gains Tax (unlike transactions within directly invested portfolios). Secondly, funds do not pay VAT on individual transactions nor on their fund management charges (as directly-invested portfolios must). It is also much cheaper and easier to rebalance a portfolio of funds, either following a withdrawal or a significant movement in value, and thus maintain the correct market weightings asset allocation strategy. 

Cost - Reducing what is termed the ‘fee-drag’ on portfolios is vital to producing consistent long-term returns. We believe our investment approach combines the best of active management with low costs.

Liquidity - Finally, all our funds have daily liquidity as do all the underlying instruments in which invest. So, although we don’t encourage regular disinvestment, you have the reassurance of knowing that you are, in extremis, never more than five working days away from your money.

It is also worth noting that all our valuations are reported to you net of fees and at ‘bid’ or ‘selling’ prices so as to provide as true a picture as possible of what your portfolio would be worth if it was liquidated today.