Horizon Investing

Tideway’s Horizon approach allocates capital based on the time horizon, risk appetite and use of funds. Because different assets have different return and risk characteristics it is important to match investments with the expected holding period.

Money earmarked for use in the next five years is allocated to Horizon One assets which are stable, secure, low volatility investments such as short dated corporate bonds and cash. Horizon One assets are selected to target real returns of 2% p.a.

Horizon Two capital is invested for five to ten years across a selection of Absolute Return Funds and bonds (including hybrid capital). Horizon Two assets aim to deliver real returns of 3-5 % p.a.

Assets with the highest volatility and long term expected return are allocated to Horizon Three. Horizon three assets are selected on the basis of being held for at least ten years and include single name equities, long only equity funds and long dated corporate bonds (including hybrid capital) Horizon Three assets are chosen to deliver real returns of 4-6% p.a.

  Investment Objective Investments Comments
Horizon One
Up to 5 years
Liquid funds required over the  next 5 years
Minimal risk of loss to capital
Target Real Return of 1-2% p.a. 
Cash deposits
Short dated bonds
Lowest return and lowest volatility
Clear visibility on return of capital
Liquid, can raise cash instantly
Horizon Two
5 to 10 years
Support income and other withdrawals over 5-10 years
Maintain and increase capital value in real terms
Target Real Return of 3-5% p.a.
Medium term bonds
Absolute Return funds
Target Return Funds
Taking some risk in order to generate medium real returns
Allow for some higher volatility
Focus on strategies with downside limits
Horizon Three
Over 10 years
Funds with no call on capital for at least 10 years
Volatility tolerated in exchange for higher long term returns
Target Real Return of 4-6% p.a.
Long dated bonds
Long only equity funds
Individual equities
Least constrained portfolio
Investing for the long term with a view to generating high positive real returns
Can withstand most volatility

Tideway Investment Partners LLP
is authorised and regulated by the
Financial Conduct Authority.
FCA number 496214.

Contact
Tideway Investment Partners LLP
Thomas House
84 Eccleston Square
London SW1V 1PX
+44 (0)20 3143 6100
info@tidewayinvestment.co.uk