Tideway Horizon Portfolios are concentrated in high conviction research-driven ideas and use a unique framework which allocates capital according to time horizon, risk appetite and use of funds.
Horizon portfolios create a cascading cash flow all the way from the long dated investments through to short term bonds and cash. The objective is to meet investor income and capital needs whilst never having to be a forced seller of investments at a loss in the short term.
Remember – whilst volatility can work with positive effect when accumulating an investment portfolio (buying on weakness) it can be ruinous when starting to de-accumulate and make withdrawals (selling on weakness).
Withdrawals are made by selling stable Horizon One assets first, meaning that the risk of having to sell an asset at the wrong time and realise losses is dramatically reduced. This improves long term returns.
In addition, income from Horizon Two and Horizon Three portfolios can saved to meet unexpected cash needs or where there is no requirement for cash the income can be re-invested and returns will compound.