Hart Investment Programme

The importance of asset allocation and the modern Portfolio theory that forms part of the Hart Investment Programme

The Hart Investment Process

We follow proven methods. of successful long term investing, providing our clients with the means to meet their investment objectives. The key areas of our process are as follows:

Asset Alocation

Different investment types tend to rise and fall in value at different times, e.g. Over the past few years the housing market has risen while the UK stock market has fallen. Harry Markowitz was awarded the Nobel Prize for his work Showing that asset allocation is the most important factor in determining the performance of investment portfolios* a method that we adopt within the Hart Investment programme.

* As shown by studies such as "Determinants of Portfolio Performance II: An Update," Brinson, Singer & Beebower (1991)

^ Harry M. Markowitz (b. 1927) was awarded the Nobel Prize for Economics in 1990 in conjunction with Merton H. Miller & William F. Sharpe for "their pioneering work in the theory of financial economics"

Through the use of detailed computer modelling, the Hart Investment Process provides our clients with an optimal mix of assets giving a higher potential return for any given level of risk and steadier investment growth than would otherwise be expected.

Fund Selection

After assessing a suitable asset allocation mix for you, it is important to choose the most appropriate managers and funds within each sector. By selecting those fund management companies with special areas of expertise and those fund managers with a history of strong performance, an effective combination of funds can be compiled. Other factors we consider when recommending funds include:

  • Consistency of fund performance
  • Fund risk
  • Value/growth orientation
  • Small/large cap orientation  (Small Cap are smaller company stocks outside of the Footsie 250 large Cap are large compnay stocks who are in the Footsie 250 we consider the mix of these stocks to control the risk of the portfolio)
  • Fund size
  • Industry holdings
  • Underlying stock holdings
  • Standard & Poors® star rating

For more information, ring us on 01722 413348 or send us your details via email on This e-mail address is being protected from spambots. You need JavaScript enabled to view it