PortfolioMetrix – A New Era of Discretionary Investment Management

Why do we work with PortfolioMetrix?Portfolio Metrix Team.jpg

At Intelligent Investments, we want to dedicate all of our time to understanding you, your financial needs and goals. Much like your GP, we can provide you with advice in many areas and as such need to maintain a high level of understanding in all these areas. However, like a GP, we need to work with specialists in certain critical disciplines and investment management is one of the most critical.

The world of investments is complicated and ever changing. It thus requires a dedicated, skilled team to assess the most appropriate investments for you. PortfolioMetrix is such a specialist investment manager which only works via advisers to manage private client portfolios.

We feel this partnership allows us to deliver a superior integrated wealth management service to you, and so Managing Director of Intelligent Investments, Simon Cook, and Director, Julius Davison travelled to South Africa to meet the team at PortfolioMetrix in May.

PortfolioMetrix is a UK FCA and South African FSB regulated, discretionary investment manager that offers more benefits than traditional discretionary investment manager (DFMs) and model portfolio providers. Launched in 2010, PortfolioMetrix was designed and developed to challenge the old order of investment services available to banks and financial advisers.


Superior integrated wealth management requires two key disciplines being blended together in a seamless manner.

We spend our time ensuring we continuously understand your needs and objectives, while PortfolioMetrix is dedicated to investment management. Intelligent Investments and PortfolioMetrix maintain regular contact to ensure that there is a two way flow of information into the process.

PortfolioMetrix manages portfolios on a discretionary basis, which means they do not need to ask for your permission to make changes in the portfolio (as long as the changes are consistent with the mandate you sign with us and PortfolioMetrix to ensure the portfolio is suitable to your needs). This is a key benefit of working with PortfolioMetrix as the investment markets are often fast moving and being able to react quickly (or not over-react) is crucial.

Why Integrated Wealth Management Is Essential

The reasons for integration can best be described in the quote below:

Though often a complex exercise, integration is a must.   I often ask a simple question: ‘would you rather operate an abacus or a calculator?’ An abacus is simple to make, but complex to learn how to operate. Contrast that to the user- friendliness of a calculator, which is much more difficult to design and manufacture. The message is easy to understand: complexity is only a problem if it makes it difficult to act.” Jean L.P. Brunel

We have worked hard in building a practice whereby the various functions of wealth management are seamlessly integrated to provide our clients with a world class product. This, we believe, allows us to present a completely coherent overall product where all parties involved are working together to achieve the most appropriate outcome for you.


Our partnership with PortfolioMetrix has given us access to the latest technology in the wealth management industry as well as asset management skill. These technology based resources allow us to perform a sophisticated analysis of your needs and ultimately to select an investment portfolio that is most likely to meet your financial requirements. The concepts are straightforward but the product is very difficult to replicate. The below graphic illustrates very simply what questions are most important for us to answer in order for us to achieve the desired result.

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PortfolioMetrix Alpha

The most obvious benefit of working with PortfolioMetrix is the opportunity to significantly enhance investment outcomes. This doesn’t just mean the potential to generate superior returns, but to do so through a rigorous, well-engineered process. Consistent risk-adjusted returns, compounded over the life of a portfolio, significantly reduces shortfall risk and increases investor well-being.

PortfolioMetrix uses a number of different investment techniques to augment investor returns but rejects the use of methodologies, regardless of their popularity, that have been shown to add little benefit and may even destroy value on closer inspection.

PortfolioMetrix specialises in asset allocation, fund selection and rebalancing, all of which contribute towards the end result, which is what the clients ends up with in their pocket.

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Risk Control

Higher return seems like an obvious requirement when assessing the successful implementation of a portfolio, but the result needs to viewed through a slightly more analytical risk based lens.

A 100% potential return sounds great, but what if the chance of losing all the money invested is 50% of the time?

Suddenly this seems less appealing, because in essence what is described is the dynamics of playing roulette.  Whilst it is true that generally higher returns require higher risks, not all risk is rewarded with increased expected returns. The key to good asset management and control is to ensure both that the right amount of risk is being taken, and that the investor is being “paid” for the risk they take.

Return, therefore should never be reviewed in isolation, but always through a lens of return per πunit of risk taken.

From an investors point of view if the investment manager doesn’t take enough risk the investor could be disappointed by the return achieved, conversely if too much risk is taken the investor’s composure could be challenged resulting in the investor intervening and pulling out of the portfolio at completely the wrong time.

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PortfolioMetrix’s team is handpicked and highly qualified, with a combined 100 years of investment experience. Currently, along with four CFA Charter holders they have six Certified Financial Planners and a wealth of experience from the product provider side, particularly targeting high net worth investors.

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  • Accountability – your investment or pension remains held within an independent platform. If PortfolioMetrix performs badly, we can switch clients into anything else on the platform, cost-free which makes PortfolioMetrix hugely accountable
  • Independence – PortfolioMetrix is fully independent. It has no hidden relationships and chooses investments purely on the basis of which are most suitable
  • Cost Effective – PortfolioMetrix charges an annual fee disclosed with you upfront. It does not receive any other form of remuneration and is constantly looking to lower your overall investment cost by negotiating lower priced fund costs and other third party fees where possible
  • RegulatedPortfolioMetrix Asset Management Ltd is authorised and regulated by the UK Financial Conduct Authority (FCA reference number: 564162), and by the Financial Services Board in South Africa (FSP Number: 42383)


To learn more about PortfolioMetrix and how it may benefit your investment or pension, please complete your details below and one of advisors will be in contact to discuss the process with you.