OUR PORTFOLIOS & FACTSHEETS

SCM
Bond Reserve

SCM
Bond Reserve

SCM
Absolute Return

SCM
Long-Term Return

SCM 50/50
Bond Reserve/Absolute Return

SCM 50/50
Bond Reserve/Long-Term Return

SCM 50/50
Absolute Return/Long-Term Return

Asset Allocation as at 30th June 2018
Asset Allocation as at 30th June 2018
Asset Allocation as at 30th June 2018
Asset Allocation as at 30th June 2018
Asset Allocation as at 30th June 2018
Asset Allocation as at 30th June 2018

Investments within the portfolio: 100% fixed income and cash

This portfolio is invested in fixed income ETFs, typically in a combination of developed and emerging corporate and government fixed income products, together with cash

The portfolio is benchmarked against cash.

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Investments within the portfolio: The asset allocation is not fixed but is typically c.60% equities, 40% bonds / commodities / cash / other assets

This portfolio is normally invested in a wide spread of ETFs and is typically invested in a combination of UK and global shares together with investments in bonds and other assets

The portfolio is benchmarked against cash.

Download the latest monthly factsheets >

Investments within the portfolio: The asset allocation is not fixed but is typically c.75% equities, 25% bonds / commodities / cash / other assets

This portfolio is normally invested in a wide spread of ETFs and is typically invested in a combination of UK and global equities together with investments in bonds and other assets

The portfolio is benchmarked against inflation.

Download the latest monthly factsheets >

Investments within the portfolio: The asset allocation is not fixed but is typically c.30% equities, 70% bonds / commodities / cash / other assets

This portfolio is a 50 / 50 blended portfolio of the SCM Bond Reserve Portfolio and the SCM Absolute Return Portfolio invested purely in ETFs

The portfolio is benchmarked against cash.

Investments within the portfolio: The asset allocation is not fixed but is typically c.35% equities, 65% bonds / commodities / cash / other assets

This portfolio is a 50/50 blended portfolio of the SCM Bond Reserve Portfolio and the SCM Long-Term Return Portfolio and is invested purely in ETFs

The portfolio is benchmarked against cash

Investments within the portfolio: The asset allocation is not fixed but is typically c.65% equities, 35% bonds / commodities / cash / other assets

This portfolio is a 50/50 blend of the SCM Absolute Return Portfolio and the SCM Long-Term Portfolio and is invested purely in ETFs

The portfolio is benchmarked against inflation

 

Combination of UK, USA and European flags

Available in Three Currencies

Combination of UK, USA and European flags

The SCM Portfolios are available in £, €,and US $. The currency portfolios follow the same broad asset allocation as the UK £ portfolios — for example, if a £ portfolio for a given strategy has 50% in equities, investors can expect the $ or € portfolios, to also have 50% in equities.

The main difference is that the central bias of each portfolio will be to those equities or bonds that are geographically based in that portfolio’s home currency. However, there may be times when this differs according to our views of the home markets and their currency, as we look at each portfolio from the viewpoint of the home currency and the home markets when determining the particular asset allocation.

IMPORTANT:  There may be tax implications regarding investing in the USD or Euro based portfolios as the USD ETFs and some of the Euro-based portfolio ETFs do not have reporting status – this may mean that investment gains are taxed as income rather than capital gains.

To receive more information on the USD or EUR portfolios, please contact us at enquiries@scmdirect.com or complete the ‘Send Message’ option at the bottom of this webpage.

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Fees will vary according to the current selection of ETFs and current levels of trading activity, latest fees shown in all monthly factsheets. The figures above are based on the average fees and charges, weighted by the amount invested within each of the SCM GBP Portfolios as at 31st December 2017. When investing via the Hubwise SIPP, an additional charge is made of 0.1%+VAT subject to a minimum annual charge of £15+VAT and a maximum annual charge of £50+VAT. An additional fee of £125 +VAT applies to any SIPP that is in drawdown. Other fees for work in relation to for commercial property, divorce & death for example are available on request and will be quoted to you before any work is carried out.

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The Risk-Return Trade Off

When investing, the general principle is that the higher the likely return, the higher the likely risk. This is known as the risk-return trade off.

Frequently Asked Questions

What is the difference between an SCM discretionary portfolio and a mutual fund?

One of the main differences is that in a discretionary portfolio the holdings are all held in your name, rather than through holding units as happens in a mutual fund.

 
Investors can go on-line at any time and see the full breakdown of holdings within their account, as well as the actual values of the various holdings as at last night’s closing values.

 
It should be noted that there are tax differences between holding a discretionary portfolio and holding units in a fund and you may wish to get specialist tax advice before investing. For those investors not investing via an ISA or SIPP we will provide an annual statement of capital gains and income for clients to enter on their annual tax return.

What are the SCM Direct portfolio choices?

We have 3 core portfolios and 3 blended portfolios that are available in 3 currencies.

The GBP portfolios are also available via a NISA or SIPP ‘wrapper’.

The 3 core portfolios are:

  1. SCM Bond Reserve
  2. SCM Absolute Return
  3. SCM Long-Term Return

3 blended portfolios made up of a 50/50 allocation of two of the three core portfolios, which are rebalanced subject to relevant parameters on a weekly basis:

  1. 50/50 Bond Reserve/Absolute Return
  2. 50/50 Bond Reserve/Long-Term Return
  3. 50/50 Absolute Return/Long-Term Return

The 3 core portfolios and 3 blended portfolios are available in 3 currencies – £, US$ or €

The minimum investment levels are:

  • For direct clients our minimum investment level is £10,000 investing in one of our GBP portfolios.

If you are either outside the UK or do not have a UK bank or building society account, the minimum is £100,000.

  • $100,000 if investing in one of the USD $ portfolios
  • €100,000 if investing in one of the EUR € portfolios

3 ways to invest

  •  Direct into the portfolios without a tax efficient wrapper
  •  Via an Individual Savings Account – ISA
  • Via a Self-Invested Personal Pension – SIPP Account (Via Hubwise Securities Ltd)
What are the main advantages and disadvantages of SCM’s investment approach?

The main advantage is that it is highly unlikely we will be bottom as our high levels of diversification, both of assets and securities, will often reduce the highs and lows of more traditional, concentrated funds. We believe that our approach of greater diversification, less costs and a focus on fundamentals are the best tools to ensure long term success.

SCM Direct believes that successful asset allocation relies on a common sense contrarian approach combined with the application of old fashioned fundamental investment valuation yardsticks e.g. price/earnings, yield, price/book, price/cash flow.

SCM Direct endeavors to invest in markets when they are most out of favor and under-valued in order to reduce the risk of being invested in the latest investment bubble or fund manager fad. Successful asset allocation often relies on being contrarian rather than blindly following the herd of investment professionals.

Concentrating on building these actively managed portfolios through the use of ETFs allows SCM Direct a wide choice of asset classes combined with very low transactional and fund management costs compared with most traditionally managed active funds.

The main disadvantage is that we will almost certainly never be top of any table in terms of performance. Another disadvantage is that our approach is extremely unlikely to help anyone ‘get rich quick’ as broad market indexes tend to move up or down less than many individual securities.

Please remember that each person’s tax situation is unique, that ISAs may not be the most tax efficient approach for everyone, and that tax legislation can change in the future. If you are unsure if an investment is right for you, please contact an independent financial adviser.

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