Rivers Capital Management is a specialist investment and advisory firm providing investment management solutions exclusively for Financial Advisers and Intermediaries.
Our focus and expertise is in portfolio construction and multi-strategy investment. Our absolute return approach aims to produce above average risk adjusted returns. Our multi-asset solutions are made up of independently selected external funds.
We help financial advisers to outsource investment management to a trusted and experienced partner allowing them to spend more time adding value to their clients.
We know that protecting capital and avoiding loss leads to superior investment returns. We prefer simple independently selected and transparent solutions.
Markets are often inefficient and all portfolios require continued monitoring and occasional adjustment. Our research shows that the opportunity to outperform for active managers varies throughout the market cycle. We therefore focus on adjusting the balance in favour of and against active managers according to market conditions. As a result long term value to clients and not cost drives our investment decisions.
Each portfolio is developed around a fixed set of risk and return parameters. We maintain our focus on these characteristics through independent evaluation and transparency.
As well as five general growth and two income orientated portfolios, tailored investment plans can be specified with a target level of risk, return and maximum loss for advisory group requirements.
1.Having a critical focus on Maximum Loss across all portfolios which is at the heart of our portfolio construction and risk management.
2.We combine independent fund selection research with extensive in house expertise.
3.We dynamically manage allocations between passive and active fund strategies.
4.Portfolios are individually optimised for the funds available on each platform.
5.Our experienced team is available to provide bespoke tailored comparisons and analysis directly for advisers and their clients.
The investment process starts with Strategic Allocation. Here we build the key long-term drivers which are the foundation of the portfolios we manage. The strategic allocation, risk/return parameters, investment restrictions and benchmarks’ investment policies will all define the portfolios’ characteristics over the long term.
The strategic asset allocation is constructed in the theoretical quantitative world. We believe markets are inefficient and that the strategic allocation needs to be continually adjusted to take account of market discrepancies and to avoid unnecessary risks.
An ongoing, independent and continuous risk management framework ensures the portfolio is not exposed to excessive risk or to an elevated possibility of breaching its maximum loss criteria
The portfolio construction begins with broad, non-correlated allocation to low risk, low return assets – The Anchors.
To increase the long-term return attributes we take (mainly) equity market risk and allocate to assets with expected long term high returns – The Enhancers.
To add diversification and limit market volatility we then augment with non-correlated diversifying assets which lower the overall portfolio return volatility – The Diversifiers.
We determine the proportional allocation to Anchors, Enhancers and Diversifiers in each portfolio using risk optimisation. Firstly at the strategic level to set the benchmark as a starting point and then we review tactically throughout the investment period
At Rivers we have confidence in our own fund selection abilities, but we enhance this capability through partnership with an independent partner. By partnering with third-party research we believe we can more identify more efficiently a majority of the core managers and more complete more thoroughly due diligence to ensure suitability for investment.
As a small team our resources are best allocated to identifying new, small and interesting investment opportunities in areas often overlooked by mainstream investors and research organisations. These have added considerable value to models previously managed by the Rivers team. Rivers maintains full control of the Approved list and reserves the right to overrule third party ratings with full disclosure to all clients. Fund underperformance or deselection/downgrading by third party research will in most cases result in allocation redemption.
Rivers currently invests in around 50 individual investment solutions across all portfolios and platforms and closely monitors approximately 100 on an approved list across all asset classes. This 100 is dynamically updated on an ongoing basis in partnership with third party independent researchers.
The standard investment management fee is 25bps.
Yes, Rivers has a Cautious and a Balanced Income product with distribution targets of 3.5% and 4.0% respectively.
We don’t have a minimum investment amount for the Model Portfolio Service (MPS), but the platform may impose a minimum.
Richard Bonnor-Moris is ultimately responsible for the Model Portfolios however the Investment Committee needs to agree all significant changes or new fund introductions. All portfolios are provided with full transparency and all changes communicated to all advisors.
Investment meetings are held on a monthly basis at Rivers and are attended by the full internal Investment team which is joined by external investment professionals to ensure full market insight and a diversity of views is represented. Minutes for these meetings are kept and advisers are free to participate in a follow up meeting if required
Trade Notes are distributed as and when portfolio changes are made and Market Commentary provided on a monthly and ad hoc basis as appropriate. Bespoke portfolio comparisons and requests can be obtained by contacting any of the team directly. Rivers Capital Management macro views are communicated through the Current Focus monthly comment. All commentary for generic portfolios is available on the website
We send Monthly performance reports by email and these incorporate monthly performance attribution and portfolio manager commentary. Monthly reports are also available for download on the Rivers website.