Many investors build portfolios on their own, often selecting instruments that seem similar at first glance. However, two ETFs tracking the same benchmark can differ markedly in structure, fees, and management. Without thorough analysis, there’s a real risk of including less efficient or needlessly expensive options.
This is where our expertise comes in: a rigorous, ongoing selection process built for long-term results and focused on achieving the right balance between risk, return, and cost. Choosing the right solution – among the best available – can make a meaningful difference over time.
Smart choices, better outcomes
Every day, we carefully evaluate the financial instruments available to us, with one aim in mind: to build strong, diversified portfolios that reflect a long-term investment approach.
Our ETF selection follows a rigorous, data-driven process. We assess each fund based on quality, cost, and alignment with our investment philosophy, with the goal of identifying the best-in-class solutions on the market – those that stand out in their category for structure, reliability, and long-term suitability. This approach is designed to maximise portfolio efficiency throughout all phases of the market cycle.
A targeted approach to cost reduction
We regularly adjust our portfolios to ensure they remain aligned with each strategy’s risk profile and investment objectives.
Rebalancing can take different forms: some are tactical or strategic, involving shifts in exposure to specific asset classes or market segments. Others – like our most recent update – focus purely on fund selection, leaving the overall strategy and asset allocation unchanged.
In this case, we replaced a number of ETFs with similar instruments that offer lower management fees. This technical optimisation leaves the portfolio structure intact while improving overall efficiency and supporting stronger long-term net returns.
Fund selection matters, even outside of tactical or strategic shifts: finding the most efficient option available is an essential part of our responsibility as portfolio managers.
What this means for your portfolio
Our most recent rebalancing has led to a clear reduction in overall portfolio costs. On average, the fees charged by the investment funds in our portfolios have dropped by 0.035 percentage points—equivalent to a 20% cost saving compared to the previous average.
To put it simply, the average annual cost has gone down from 0.20% to 0.165%. In some portfolios, the reduction has been even greater, reaching up to 0.10 percentage points. While these changes may seem small, over time they can make a real difference by improving your net returns.
This intervention was carried out directly by our team, with no additional costs for you: no fees, no tax impact.
Sustained focus on efficiency
Even modest, well-judged adjustments can enhance a portfolio’s overall efficiency and, over time, deliver meaningful value for the investor. Reducing costs is just one of the ways we work to build robust, consistent solutions aligned with a long-term investment strategy.
We remain vigilant in monitoring the markets, continuously seeking opportunities to optimise portfolios—always with full consideration of each investor’s risk profile and long-term objectives.
Please remember that when investing, your capital is at risk. The value of your portfolio with Moneyfarm can go down as well as up and you may get back less than you invest. Past performance is not a reliable indicator of future performance. The views expressed here should not be taken as a recommendation, advice or forecast. If you are unsure investing is the right choice for you, please seek financial advice.
*As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. Past performance is no guarantee of future results. It is important to consider your risk tolerance and investment objectives before proceeding.
