Portfolios

EBI offers four portfolio suites; UK Bias, Global, World and Earth, all built around the core investment philosophy of low-cost, passively managed and diversified holdings.

Each suite provides for both accumulation and income and is segmented into a total of 22 portfolios (11 Income units and 11 Accumulation units). These portfolios range from a 100% Bond portfolio to a 100% Equity portfolio with increments of 10% equity increases.

UK Bias

The portfolios within the UK Bias suite invest exclusively in collective investment funds, including both open ended investment companies and unit trusts, but not exchange-traded funds (ETFs). These portfolios are suitable to investors who would prefer a significant weighting in UK stocks, which is how most portfolios for investors residing in the UK have traditionally been built. As there are no ETFs in these portfolios, they are also suitable for smaller portfolio sizes and smaller regular buys or sales.

Global

The Global portfolios, as the name suggests, invest more broadly throughout the world with the allocation to UK stocks reduced to their market capitalisation. These portfolios will appeal to investors who would prefer a more globally diversified portfolio; international investment is now generally regarded as a superior strategy to having an overweight holding in any single home country, such as the UK*. As there are no ETFs in these portfolios, they are also suitable for smaller portfolio sizes and smaller regular buys or sales.

World

The World portfolios build upon the Global suite by including ETFs. This gives access to a wider range of funds and helps to reduce costs. In addition, World portfolios allow access to the momentum factor, which is only available via ETFs. World portfolios will appeal to investors who would prefer a more globally diversified portfolio including momentum equities. World portfolios are likely to be suitable for larger investments and where smaller regular buys or sales are not required.

Earth

The Earth portfolios build upon the World suite, but with the inclusion of Environmental, Social and Governance (ESG) funds where possible. EBI use screened funds within the Earth portfolios, meaning they eliminate certain exposures from the portfolio based on criteria such as business involvement or sector. In addition, these portfolios also allow access to the momentum factor via holding ETFs. Earth portfolios will appeal to investors who would prefer a globally diversified portfolio which includes a momentum factor premium, and investors that have shown an interest in ethical investing. Earth portfolios are likely to be suitable for larger investments where smaller regular buys or sales are not required, due to the inclusion of ETFs.

*Asness, Cliff S. and Israelov, Roni and Liew, John M., International Diversification Works (Eventually) (June 9, 2011). Financial Analysts Journal, Vol. 67, No. 3, 2011. Available at SSRN: https://ssrn.com/abstract=1861362

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