Brian Tora, chairman of the asset allocation committee at Gerrard, said the private client business...
Brian Tora, chairman of the asset allocation committee at Gerrard, said the private client business is attempting to change its investment process in a bid to boost performance.
In a process which is still underway, the company is overhauling the way in which securities are analysed using what it describes as a more 'American' method of assessing whether a stock is worth buying.
Tora said: 'Our fund managers are now putting stocks into one of five groups based on the following attributions: growth, income, stalwart, recovery and cyclical.'
He added this means stocks will now be chosen on the basis of where they are in the investment cycle.
The group is also looking to review how portfolios are benchmarked. Currently the company uses Apcims but Tora believes it needs to use a wider range of benchmarks.
Tora said: 'Like other private client brokers, we need to reinvent ourselves, we need much more sophisticated methods of determining what to invest in.'
The group started changing its investment approach 18 months ago and Tora said it is now finalising the changes to be made.
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