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13/5/2024
5
min read

Fund manager insights: Portfolio construction & management

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Ever wondered what it takes to construct and manage an investment portfolio? 

“There’s a rule for UK open-ended funds which is called the 5, 10, 40 rule, whereby no individual company can make up more than 10% of the portfolio, and the top five shouldn’t in total be more than 40% of the portfolio.” - Rosemary Banyard.   

Although some managers can be frustrated by this rule, Rosemary believes it’s beneficial as a protection for investors against too much concentration.  

Listen to the latest podcast episode now, where Judith MacKenzie, Head of Downing Fund Managers, and Rosemary Banyard, Manager of the VT Downing Unique Opportunities Fund, discuss what it takes to build and manage an investment portfolio in the seventh episode of the Fund Your Retirement podcast series.  

In this episode, Judith and Rosemary cover: 

  • What is portfolio construction and portfolio management? 
  • What types of risks should investors think about when constructing a portfolio of stocks? 
  • How do Judith and Rosemary diversify risk across the stocks they own? 
  • What tools or software do they use to aid them in managing their investment portfolios? 

Listen to the podcast below: 

This is the seventh episode of an eight-part series. Watch the previous episodes here. 

‍Downing Fund Managers 

Judith founded Downing Fund Managers in 2010, the boutique investment arm of Downing, a distinctive suite of funds and investment solutions that differ from the mainstream.  

Rosemary manages the VT Downing Unique Opportunities Fund, a strategy that invests in unique businesses that can achieve above-average returns on capital, based on a sustainable competitive advantage. 

Further links and resources:


Risk warnings: Please note that past performance is not a reliable indicator of future results. Capital is at risk. Investments and the income derived from them can fall as well as rise and investors may not get back the full amount invested. Investments in our funds should be held for the long-term and are higher risk compared to investments solely in larger, more established companies. Opinions expressed represent the views of the fund manager at the time of publication, are subject to change, and should not be interpreted as investment advice. 

Important notice: This content is for information only and does not form part of a direct offer or invitation to purchase, subscribe for or dispose of securities and no reliance should be placed on it. This content contains information that is believed to be accurate at the time of publication but is subject to change without notice. Whilst care has been taken in compiling this content, no representation or warranty, express or implied, is made by Downing LLP as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified. Downing does not offer investment or tax advice or make recommendations regarding investments. Downing LLP is authorised and regulated by the Financial Conduct Authority (Firm Reference No. 545025). 

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