Many investors equate models with “model portfolios”. This often makes them wary. They may think, perhaps, that an investment management company only provides a small number of model investment portfolios, with little differentiation according to individual requirements, across its entire client base. Whilst this may be true of some companies it is not true at Taylor Young. We use models to illustrate our portfolio construction techniques and our long-term performance. They form an important part of our investment process and our business.

A building block, used in the construction of a bespoke portfolio, can be a model in its own right – for example, a core UK Equity structure. Alternatively, it can be combined with other building blocks to form a “house model” with an individual benchmark – for example, the International Growth model which combines several international growth building blocks. These models are often applicable to a number of clients and are a response to recurring requirements rather than any desire on our part to standardise our business. For clients with non-standard requirements, building blocks are combined to form a bespoke model. New building blocks can and will be created if and when necessary. We monitor models on a very strict basis in order to observe the performance of particular investment mandates.

This is a powerful, modular architecture enabling us to manage a wide range of tailored mandates in a flexible, well-controlled manner.



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