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Timeline Model Portfolios: what you get and how they're managed

Summary

  • What they are: Timeline Model Portfolios are model portfolios run by Timeline's investment team as a discretionary fund management (DFM) service. You recommend the model, Timeline manages it.

  • Four core ranges: Timeline Tracker, Timeline ESG Tracker, Timeline Classic and Timeline ESG Classic.

  • Eleven models in each range: from 0% to 100% in equities, in steps of 10 percentage points, so you can match a model to your client's attitude to risk.

  • Managed to a rule: Timeline buys and sells funds to bring a model back to its target mix when equities drift more than 10 percentage points above or below the target.

  • Everything in one place: the "Models" tab in Timeline holds each model's holdings, costs, performance, risk ratings, fund documents and the compliance and client material that goes with them.

Description

1. How the models are managed

The models are managed by Timeline's investment team using a low-cost, evidence-based, simple portfolio strategy, grounded in decades of academic research and market data. Rather than trying to predict market movements, the team follows a consistent, disciplined, long-term approach that helps avoid costly habits such as selling when markets fall. Your client's money is spread across many countries, companies and asset types, so it doesn't depend on any single one doing well.

Rebalancing follows the market rather than the calendar. Timeline buys and sells funds to bring a model back to its original mix whenever equities drift more than 10 percentage points above or below the target equity weighting.

2. The ranges

  • Timeline Tracker: index funds that track market-cap-weighted equity markets, with diversified fixed income matched to each risk level.

  • Timeline ESG Tracker: the Tracker approach with sustainability screens and tilts.

  • Timeline Classic: globally diversified, with deliberate tilts towards factors such as smaller companies and value companies.

  • Timeline ESG Classic: the Classic approach with sustainability screens and tilts, including a lower-carbon focus.

Each range has eleven models, named after their equity weighting, for example "Timeline Tracker 30" or "Timeline ESG Classic 30". On some platforms a range is also offered in a version that holds 2% in cash, and its name says so, for example "Timeline Tracker (2% Cash)". Those models hold up to 98% in growth assets.

3. What you'll find in the Models tab

If your firm uses Timeline's models, click "Models" in the top navigation. The tabs along the top give you:

  • "Portfolios": each model in a range, with its growth assets, weighted OCF, weighted transaction cost, number of funds, approximate number of underlying equities and bonds, and benchmark, plus the fund list and weights.

  • "Performance": a performance table and graph, with an option to show figures net of the DFM fee, and exports to Excel.

  • "Risk": global asset allocation, risk metrics, minimum and maximum returns over rolling periods, and how each model maps to risk profiling tools.

  • "Funds": every fund in the range, with ISIN, OCF, transaction costs and fund size, and factsheets and KIIDs to download.

  • "Model Drift": how far each model is from its target on the platforms your firm uses.

  • "EF Charts": efficient frontier charts comparing the models with an industry-standard benchmark and other portfolios.

  • "Resources": documents for your file and for your clients, such as research on our investment approach, compliance material and client explainers.

4. Key risks

Investing in any model carries risk. Share these with your client alongside your recommendation:

  • Market risk: the value of shares and bonds can fall as well as rise, sometimes sharply, in response to economic, political or market events.

  • Interest rate risk: bond prices generally fall when interest rates rise. Models that hold more bonds, or bonds with longer maturities, are more sensitive to this.

  • Credit risk: if a bond issuer fails to make the payments it promised, or its credit rating falls, the value of the investment can fall too.

  • Index tracking risk (Tracker models): index funds aim to track a benchmark rather than beat it. Tracking is unlikely to be exact, and the fund will follow its benchmark down as well as up.

  • Factor risk (Classic models): factor tilts towards value, size and profitability can underperform the broader market for long periods.

  • Sustainability risk (ESG models): sustainability screens narrow the investment universe, so returns may differ from broader markets, positively or negatively. ESG data and ratings can vary between providers.

Past performance is not a reliable guide to future returns. The value of investments and the income from them can fall as well as rise, and your client may get back less than they invest.

Conclusion

Timeline Model Portfolios give you a low-cost, evidence-based range you can match to each client's risk level, run by an investment team to a clear rebalancing rule. The holdings, costs and documents you need for suitability sit in the same system as your client's plan.

Next, read Find and select Timeline models on your platform, What a model costs: fee plus OCF and the FAQs: Model Portfolios.