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Investment Process

1. Identification of Client Risk

4. Investment Selection (Screening Process)

5. On-Going Risk

Monitoring

3.

Tactical Asset Allocation

2. Strategic Asset

Allocation

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Intelligent investing

At Bartholomew Hawkins Asset Management our investment philosophy is based on providing multi-asset

discretionary portfolios to meet clients’ investment objectives without exposing them to needless risk.

‘Performance’ and ‘Returns’ have been buzzwords in the investment industry for decades, however, solely

focusing on returns will ultimately lead to taking unnecessary risks. Our belief is that a client’s risk tolerance

must be the fundamental and unequivocal foundation for portfolio construction.

Bartholomew Hawkins Asset Management is different, we are not benchmark driven or constrained. Our

investment philosophy solely revolves around providing the optimum investment performance/return for a

given level of risk.

We endeavour to add value at every stage of our Investment Process, from identification and on-going

monitoring of risk to the efficient allocation of client capital and selection of investments.

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Identification of risk

When engaging with clients for the first time it is imperative to establish a client’s risk

profile in conjunction with any wider financial planning considerations.

In order to establish a client’s attitude and tolerance to risk we ask a series of risk-graded

questions to create a ‘risk profile’. This is reviewed on a periodic basis and forms the

foundation for the provision of appropriate investment strategies.

Asset allocation

Multi-asset diversification is fundamental to successful long term investment

management. Different investments tend to rise and fall in value at different times and

a well-diversified portfolio can smooth out these peaks and troughs, reducing the risk of

loss and producing steady returns.

STRATEGIC ASSET ALLOCATION

Our unique proprietary asset

allocation tool provides the

optimum blend of assets for a

target portfolio risk level. This

methodology clearly illustrates

our focus on generating strong

risk-adjusted returns for all our

clients.

WHAT’S GONE BEFORE

20-YEAR HISTORICAL INDIVIDUAL ASSET ANALYSIS

ALLOWS UNDERSTANDING OF SPECIFIC ASSET RISK/RETURN PROFILES

PROPRIETARY IN-HOUSE SOFTWARE

OPTIMAL RISK-GRADED BLEND OF MULTIPLE ASSET CLASSES

MEDIUM/LONG-TERM INVESTMENT HORIZON

WHAT LIES AHEAD

KNOWN UNKNOWNS

ADJUSTING ASSET ALLOCATION IN RESPONSE TO NEAR-TERM FACTORS

TACTICAL ADJUSTMENTS AGREED AT INVESTMENT COMMITTEE LEVEL

ENSURING CHANGES REMAIN WITHIN RISK TOLERANCES

SHORT-TO-MEDIUM TERM INVESTMENT HORIZON

TACTICAL ASSET ALLOCATION

Adjusting the long-term strategic

asset allocation in order to

benefit from short-term factors

that could impact on portfolio

performance. For example,

pending interest rate rises/falls,

political change or predicted

shifts in macroeconomic

indicators.

Investment selection

The investment selection stage of our Investment Process is crucial in order to ensure

only the most appropriate investments are selected for inclusion within client portfolios.

We allocate significant resource to conduct high levels of analysis incorporating both

primary and secondary research.

Bartholomew Hawkins Asset Management has devised a suite of automated quantitative

investment screening tools that focus on identifying investments that provide consistent

strong risk-adjusted returns. These tools are crucial in order to make the investment

selection process efficient and allow for additional rigorous qualitative analysis.

1. COLLECTIVE INVESTMENT UNIVERSE

• Data fed directly into automated screening software

2. QUANTITATIVE SCREENING

• Investment universe screened based on various metrics

• Creation of shortlist segmented by performance

history, asset type and sector

• Weighted metrics provide a ‘score’ for each investment

• Output identifies strong consistent risk-adjusted

investments

3. QUALITATIVE OVERLAY

• Analysis of qualitative factors such as an investment

mandate, fund manager style, fund manager history,

portfolio composition

• Ensure that selection meets intended investment

purpose

4. INVESTMENT SELECTION

• Incorporate investment selections into client portfolios

5. ON-GOING MONITORING

• Process repeated at least every calendar quarter

or on a bespoke basis

INVESTMENT SCREENS

QUALITATIVE ANALYSIS

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Risk management

Risk control is key to portfolio construction and ongoing management of client

portfolios. Our unique software allows for daily monitoring of risk across all portfolios,

which negates the requirement for random periodic portfolio risk monitoring which

many of our peers conduct.

Our sophisticated risk management software allows us to set risk tolerances and monitor

portfolio risk at varying levels:

We can monitor client portfolios using a heat map approach

(illustrated below) that shows how far specific client portfolios

have drifted from their individual risk tolerances.

When a portfolio drifts too far out of line in relation to set risk

parameters it will move into the ‘caution’ or ‘out of line’ segment

of the heat map. From here an Investment Manager can select

a portfolio and make necessary changes in order to bring the

portfolio back in-line with its target risk tolerances.

A significant benefit of this system is the ability to set risk

tolerances at investment-specific level. As a result, unlike

many of our peers that periodically needlessly rebalance whole

portfolios incurring excessive dealing costs, our Investment

Managers can see which specific investment/s that are causing

a portfolio to be out of line and take action in isolation therefore

minimising portfolio costs.

SECTOR/INDUSTRY

SECURITY SPECIFIC

INVESTMENT MANDATE

ASSET CLASS

MA

RK

ET

VALU

E G

BP

NORMALISED DRIFT VALUE

0.25

0.50

0.75

1.0

1.25

1.5

MRS X £584,679

OUT OF LINE INLINECAUTION

Central to our approach is a steadfast belief that a client’s risk tolerance is the fundamental and unequivocal foundation for portfolio construction.

5 Oaktree Court

Cardiff Gate Business Park

Cardiff CF23 8RS

029 2050 8002

www.bham.co.uk Email: justask@bham.co.uk

Twitter: @bhassetman

LinkedIn: bartholomew-hawkins-asset-management

Bartholomew Hawkins Asset Management Limited is authorised and regulated by the Financial Conduct Authority (626359).

Registered in England & Wales (08215198). Company Registered office: 5 Oaktree Court, Cardiff Gate Business Park, Cardiff CF23 8RS.

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RISK WARNING

Past performance is not a reliable indicator of future performance. The information contained in this document has been prepared for information

purposes only and does not constitute advice or a personal recommendation, nor does it constitute an invitation to purchase investments. It does

not purport to be a complete description of our investment policy, markets or any securities referred to in the material, and should be read in

conjunction with our Terms & Conditions, copies of which are available on request. The information on which the document is based is deemed to

be reliable, but we have not independently verified such information and we do not guarantee its accuracy or completeness. Changes in exchange

rates may have an adverse effect on the value, price or income of foreign currency denominated securities. The value of your investments and

income derived from them may fluctuate and investors may not receive back the amount originally invested. The securities and investment services

discussed in this document may not be suitable for all recipients. Bartholomew Hawkins Asset Management Limited recommends that investors

independently evaluate particular investments and strategies and encourages investors to seek the advice of a financial planner. The levels of

taxation and their respective treatment depend on your individual circumstances and the applicable law, which may be subject to change in the

future. The appropriateness of a particular investment strategy will depend on an investor’s individual circumstances and objectives.