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Designed and run by Southbank Investment Director John Butler, Wealth  Advantage is a portfolio-oriented service employing a macro-thematic investment process. Based on the benchmark UK FTSE 100 stock market index, this service allocates across all 11 so-called market “supersectors” according to our big picture, macroeconomic views, combined with major investment themes.

It then takes the additional step of pushing these macro-thematic views through a portfolio optimisation, based on the historical correlations and volatilities of each market sector. 

All sector and company allocations are done without regard to market capitalisation. There is a long-running dispute amongst academics regarding whether or not stock market indices should be market weighted or not. It is an important debate because some indices – and this includes the FTSE 100 – are dominated by a small number of companies.

In the case of the FTSE 100, five companies alone comprise nearly 1/3 of the market-weighted index. Investing by market capitalisation, therefore, severely restricts the implied portfolio diversification benefits. By weighting sectors according to their relative risk contributions in a combined portfolio, rather than by market capitalisation, Wealth Advantage extracts, ex-ante, greater diversification benefits. 

That’s no guarantee of higher returns, but it does imply, ex-ante, a superior risk-reward mix.

Wealth Advantage is designed to help you conserve your assets and build your wealth while protecting you from the hidden dangers of inflation. The goal is to outperform the FTSE 100 over the medium and longer term, ideally with both higher returns and slightly lower volatility.

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You don’t need more information to be a better, more profitable investor. You need better research. Here you’ll find investment ideas and strategies from some of Britain’s most experienced investors produced specifically for investors like you. Learn more about independent stock market research and advice from one of the UK’s oldest financial publishers.

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Advice in the Southbank Wealth Advantage does not constitute a personal recommendation. Any advice should be considered in relation to your own circumstances, risk tolerance and investment objectives.

Before investing you should carefully consider the risks involved, including those described below. If you have any doubt as to suitability or taxation implications, seek independent financial advice.

Your capital is at risk when you invest, never risk more than you can afford to lose. Past performance and forecasts are not reliable indicators of future results. Bid/offer spreads, commissions, fees and other charges can reduce returns from investments. There is no guarantee dividends will be paid.

Profits from share dealing are a form of income and subject to taxation. Tax treatment depends on individual circumstances and may be subject to change.

Investment director: John Butler. Editors or contributors may have an interest in shares recommended. Information and opinions expressed do not necessarily reflect the views of other editors/contributors of Southbank Investment Research Limited. Full details of our complaints procedure, privacy policy and terms and conditions can be found at, www.southbankresearch.com.

Southbank Wealth Advantage contains regulated content and is issued by Southbank Investment Research Limited.

ISSN 2977-0890

Registered in England Company No 9539630. VAT No GB629 7287 94. Registered Office: Basement, 95 Southwark Street, London SE1 0HX.

Southbank Investment Research Limited is authorised and regulated by the Financial Conduct Authority. FCA No 706697 https://register.fca.org.uk/

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