How Forth Capital Built a Shock-Proof Top-Decile Investment Proposition
Against the backdrop of the pandemic market crash, the inflation shock of 2022, rising interest rates, bond market weakness, geopolitical instability, and repeated periods of equity market volatility, Forth Capital’s ‘Next Generation’ investment portfolios have delivered outstanding results for our clients.
Over the five years to 31 March 2026, four of Forth Capital’s five Next Generation portfolios have delivered top decile returns versus their respective peer groups.
These portfolios, developed in partnership with Morningstar, were built to provide clients with a disciplined, research-led investment framework, designed to perform consistently across market cycles, not just in favourable conditions, and this robust framework continues to sit at the centre of how we manage client wealth across Forth Capital.
The Mistake We Refused to Repeat After 2008
The 2008 financial crisis exposed a major weakness across the investment industry.
Too many client portfolios, across too many firms, had been built around individual adviser preference, fashionable funds, recent performance, long-short equity strategies, and short-term market opinion.
When markets fell sharply, the flaws in that wider industry approach became impossible to ignore.
At Forth Capital, we took a different view, and the Board made a clear decision:
Let’s build a long-term pension investment strategy that we will put our own money into.
That decision became the foundation of the framework we built.
This was not theoretical. The Directors invested their own pension money into the portfolios, and the framework was built around the same principles we wanted for ourselves: discipline, diversification, independent research, long-term thinking, proper governance, and controlled risk, not to mention growth.
A Framework, Not a Fund List
We built a centralised investment framework designed to deliver consistent long-term outcomes for clients.
It combines:
- Independent investment research from Morningstar
- Five risk-rated portfolios
- A disciplined asset allocation process
- A regulated Irish ICAV structure
- Ongoing governance and oversight
- A liquid investment structure designed for long-term flexibility
- Delivery through Forth Capital advisers globally
This structure removed reliance on individual opinion and replaced it with a research-led, scalable, institutional-quality investment framework.
The Research Power Behind the Portfolios
We chose to partner with Morningstar because their investment philosophy aligned with ours. They are independent, research-driven, valuation-focused, and willing to take a different view from the market when the evidence supports it.
Their global research capability (supported by 270 analysts worldwide) gives our ‘Next Generation’ portfolios access to institutional-level investment, asset-allocation, and risk-profiling analysis that would be difficult for any traditional advisory business to replicate internally.
Importantly, our advisors also have access to Morningstar’s senior investment team, including Chief Investment Officer Mike Coop. That access gives advisors insight into the thinking behind the portfolios and strengthens the quality of client conversations.
Active Management Without the Noise
Each client is matched to one of five risk-rated portfolios through a detailed risk profiling process and the overall structure of each portfolio is controlled within defined asset allocation ranges.
Morningstar then makes research-led adjustments over time as valuations change across markets, sectors, and asset classes.
This is active management, but not constant trading or reacting to headlines. It is based on disciplined research-led allocation decisions, made with conviction, within a governed framework.
Performance as Proof
Four Top-Decile Portfolios Over Five Years
The investment case is now backed by hard evidence.
Four of the five Next Generation portfolios have ranked in the top-decile versus their peer groups over the five years to 31 March 2026 - generating returns in the top ten percent of relevant EEA Open-Ended GBP portfolios:
The Balanced portfolio has generated a return of 33.18% - versus the peer group’s 18.56%
The Growth portfolio has delivered a return of 47.90% - versus the peer group 25.93%
That is not marginal outperformance. It represents a strong validation of the framework, the governance, and the Morningstar partnership behind it.
Five-year cumulative performance to 31 March 2026:
Source: Morningstar Direct as at 31 March 2026. Past performance is not a guide to future returns. Performance is expressed as cumulative return.
Why the ICAV Structure Matters
The portfolios sit within an Irish Collective Asset-management Vehicle (ICAV) structure regulated by the Central Bank of Ireland.
This matters for governance, but it is also important for efficiency because the ICAV structure means that investments can be bought, sold, and rebalanced inside the portfolio without triggering tax on each underlying transaction.
For internationally based clients, and particularly those investing through a General Investment Account, this can create a cleaner and more efficient structure than holding and switching individual assets directly.
The result is professional management, tax-efficient internal rebalancing, and a structure designed for long-term investing.
What This Framework Delivers for Clients
For clients, this provides access to a disciplined, professionally managed investment framework built around long-term outcomes.
Clients benefit from:
- A structured approach to long-term investing
- More consistent and informed portfolio construction across time
- Clarity on risk and expected outcomes within a governed, repeatable framework
- Improved tax efficiency through internal rebalancing
For internationally based families, managing wealth across currencies, tax jurisdictions, and life stages, this provides clarity and confidence.
How This Enables Advisors
For advisors, the framework provides a stronger client proposition.
It enables them to:
- Deliver a high-quality, proven, investment solution
- Rely on institutional-quality research and governance
- Explain investment strategy clearly and confidently
- Focus on client advice rather than portfolio construction
- Strengthen client relationships through greater clarity and trust
- Scale their business without increasing complexity
In practice, this removes the need for the advisor to build portfolios from scratch, second-guess markets, or rely on fragmented solutions.
Instead, they can plug into a professional investment engine with a ten-year track record, supported by market-leading independent research and robust governance.
Built for the Next Decade
The next decade is unlikely to be easier than the last.
Interest rates are higher. Debt levels are rising. Markets are more volatile. Geopolitical risk is increasing.
In this prevailing environment, investment discipline will matter more than ever. Clients will require an investment structure that can be explained, trusted, and repeated.
That is exactly what we have built. A disciplined investment framework, a regulated structure, independent research from Morningstar, five risk-rated portfolios, and a process tested through real market conditions.
The Principle Has Not Changed
The original decision still stands:
Build a long-term pension investment strategy that we will put our own money into.
That decision shaped the original strategy.
It still shapes the way we think today.
Invest with discipline.
Use independent research.
Control risk.
Stay consistent.
Build for the long term.
That is what we have done for the past ten years.
And it is what we intend to keep doing.
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Tom Tracy |
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Important Information
This article is provided for general information purposes only and does not constitute financial, tax or legal advice. The information reflects our understanding of current UK legislation and HMRC practice at the time of writing, which may change in the future. Tax treatment depends on individual circumstances, including residence and domicile. Individuals should not take action based on this article without seeking personalised professional advice.
This article has been produced and published on behalf of Forth Capital Advisers Limited, Forth Capital Geneve Sarl, Forth Capital (Hong Kong) Limited, Forth Capital (USA) LLC, Forth Capital (Australia) Pty Ltd and Forth Capital (Europe) Limited.
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