Investment solutions
Investing with Lumin
We believe successful investing starts with a disciplined and transparent framework. It is an art and not a science – there is no right answer, no magic formula. With that in mind, our focus is simple: protecting you from a permanent loss of capital with a focus on the downside, whilst participating in the upside.
Our investment process delivers a range of carefully constructed and actively managed model portfolios, designed to support the decisions at the heart of your financial plan. Our transparent approach ensures you remain informed and aligned at every stage.
Other solutions
Investment strategy without experiments + independent implementation + active support = long-term investment success
Core range
The core portfolios are made up of five risk-graded multi-asset portfolios that invest in equities, fixed interest, and a range of alternative diversifiers.
The five portfolios are managed through a blend of active and passive investment strategies – we call this a ‘core-satellite approach’.
Thanks to our independence, we always make our decisions without any conflicts of interest. We pass on any discount and aim to keep your costs to an absolute minimum.
These five portfolios are named: Lumin 10, 30, 50, 70 and 100 – according to the equity component. For example, Lumin 50 has 50% strategic asset allocation to equity markets.
Each portfolio is populated with 15 to 20 best-in-class underlying funds, selected through a rigorous research process and continually monitored to ensure they remain aligned with their investment objectives.
Portfolios hold both active and passive funds. The default choice is low-cost passive, but active managers are used where evidence shows that they can consistently beat the index.
Core holdings take the form of passive investment products such as Index Funds and Exchange Traded Funds (ETFs). The satellite holdings are more specialised – actively managed funds – where the manager aims to outperform a benchmark on a relative basis.
Integrating passive strategies at the core of the portfolio provides broad diversification at an affordable cost. By adding actively managed satellite holdings, the aim is to deliver long-term outperformance relative to the portfolio’s benchmark.
The investments in all the portfolios are determined in the long-term by the Strategic Asset Allocation (SAA) with tactical adjustments in the short-term through Tactical Asset Allocation (TAA).
Tactical Asset Allocation (TAA) provides the flexibility to tilt asset allocation according to market conditions. Divergence is limited to 10% either side of the Strategic Asset Allocation (SAA). For example, the equity portion of Lumin 50 can be as low as 40%, or as high as 60% dependent the investment team’s outlook.
Portfolios are rebalanced quarterly, taking asset allocations back to where they were at the start of the period.
Passive range
Our passive solutions are best suited for investors seeking an ultra-low-cost, diversified multi-asset investment portfolio, utilising an indexing approach and a focus on capital growth.
We offer a range of four portfolios risk graded according to the equity component, each benefitting from active asset allocation and best-in-class index fund selection.
Passive (or index tracking funds) funds seek to replicate the performance of a collection of securities referred to as an index – such as the FTSE 100 or the S&P 500.
The portfolios combine a range of best-in-class index-tracking funds across equities, bonds, and alternatives, aiming to minimise costs while providing broad market exposure.
The passive portfolios follow the same Strategic Asset Allocation (SAA) framework as the core portfolios. An active tactical asset allocation overlay is used to aim for returns above the strategic benchmark.
Active asset allocation
Underpinned by our SAA
Ultra-low-cost
Income range
Our income range caters for a variety of income needs and aims to deliver an attractive and sustainable level of income, with relatively low levels of volatility and a focus on capital preservation.
The range of four risk-graded multi asset portfolio employs an active approach to asset allocation, finding high-quality and diversified sources of income and capital growth.
Moving into the decumulation stage of life creates the challenge of funding retirement without unduly eroding capital – a risk that is heightened by longevity and market downturns (known as sequencing risk).
Our multi-asset income solution is built to address this.
Our solution is a range of risk-graded portfolios combining diversified active and passive investments, designed to deliver high and steady natural income alongside capital growth that outpaces inflation.
We design the optimal blend of traditional (equities and bonds) and alternative investments (real assets, infrastructure and property) that seek to deliver a sustainable level of income at an appropriate level of risk.
Each portfolio populated by between 15 and 20 best in class underling funds, selected via a rigorous research process, and continually monitored to ensure they adhere to their investment objectives.
Portfolios hold both active and passive funds. The default choice is low-cost passive, but active managers are used where evidence shows that they can consistently beat the index.
Each portfolio is actively managed in line with our Strategic Asset Allocation (SAA) framework, with tactical adjustments in the short-term (TAA).
Tactical Asset Allocation (TAA) provides flexibility to tilt asset allocation according to market conditions. Divergence is limited to 10% either side of the Strategic Asset Allocation (SAA). For example, the equity portion of Lumin 50 Income can be as low as 40%, or as high as 60% dependent the investment team’s outlook.
Portfolios are rebalanced quarterly, taking asset allocations back to where they were at the start of the period.
ESG range
What is ESG investing?
An investment approach that considers Environmental (E), Social (S), and Governance (G) factors alongside traditional financial analysis to assess a company’s long-term risks and opportunities.
Designed to deliver long-term capital growth through the same strategic asset allocation framework as the core models.
Our portfolios aim to limit exposure to certain controversial business activities and are screened and scored using our in-house multi-rater approach.
Preference is given to cost-efficient index funds with improved ESG characteristics. Active funds can also be used in a targeted manner.
Environmental (E)
Environmental factors focus on how issues like climate change, resource scarcity, and regulation can financially impact a company’s financial position. This includes risks such as rising carbon prices, supply-chain disruption from extreme weather and increased spending to meet environmental regulations.
Example criteria
- CO2 emissions
- Water management
- Sustainable resource use
- Renewable energy
Social (S)
Social factors considers how a company’s relationship with employees, customers, and suppliers can directly influence its financial performance. Companies with strong social practices often benefit from lower staff turnover, fewer disruptions, and greater customer loyalty, while weak practices can lead to reputational damage or regulatory penalties.
Example criteria
- Remuneration
- Business ethics
- Anti-corruption
- Tax transparency
Governance (G)
Governance factors examine whether a company’s leadership, controls, and incentive structures support sustainable financial performance. Strong governance reduces the likelihood of fraud and misconduct, both of which can materially affect profitability, risk, and shareholder returns.
Example criteria
- CO2 emissions
- Water management
- Sustainable resource use
- Renewable energy
Active asset allocation
Capital growth
Improved ESG characteristics
Tax-efficient solutions
Higher risk investment products might be suitable for part of your overall wealth. These provide government led initiatives to reduce Income Tax, Capital Gains Tax (CGT) and Inheritance Tax (IHT).
It is essential to fully utilise the various allowances and opportunities available to reduce your overall tax liability.
Our financial planners will help you navigate available reliefs and create a plan to maximise your tax-efficiency.
Venture Capital Trusts (VCTs) are closed-end investment companies first introduced in 1995 and designed to support early-stage, high-growth and unquoted UK businesses.
VCTs offer tax-free growth and dividends, along with up to 20% income tax relief on investments up to £200,000 per tax year, tax-free dividends, and exemption from Capital Gains Tax (CGT).
VCTs are quoted on the London Stock Exchange and typically invest in unquoted shares.
The Enterprise Investment Scheme (EIS) is a government-driven initiative designed to stimulate investment in early-stage businesses through venture capital.
EIS gives investors the ability to defer Capital Gains Tax (CGT) when they invest, income tax relief of 30% on investments up to £1 million per year, exemption from CGT on disposals, and loss relief.
Business Relief (formerly Business Property Relief or BPR) is an established tax relief that can help mitigate against Inheritance Tax (IHT). By investing (purchasing shares) in a company that qualifies for Business Relief, you could potentially reduce your IHT liability.
This is contingent on the type of business asset and how long you own the shares for. Shares in Business Relief-qualifying companies, if held for a minimum of two years, and at time of death, should be eligible for IHT relief.
Cash alternatives
This is a great option for those who require effective liquidity management or have a short-term investment horizon with a low-risk appetite. We can provide a solution to your liquidity needs through our money market fund solution or direct gilt (UK government bond) investments.
A money market fund is an investment fund that invests in cash, cash equivalents, and short-term debt securities. The underlying holdings are investment grad, very low risk and designed to meet short-term cash management needs.
They provide a similar yield to the Bank of England base rate, are more flexible than a fixed term deposit, and are protected by FSCS (Financial Services Compensation Scheme) regulation.
Money market funds can be held inside a stocks and shares ISA, SIPP or general investment account (GIA).
Our in-house investment team construct a portfolio from a large universe of these funds. When capital is invested into the solution, it is spread across multiple funds, diversifying risk and establishing a higher FSCS limit.
There are no lockups or maximum investable amounts. This enables us to create a low risk, yield focused solution that can be held on platform in conjunction with your investment portfolios.
If you require predictable income, liquidity, and the need to manage interest rate and reinvestment risks, we can help you construct a portfolio of direct Gilts (UK government bonds) known as ‘bond laddering’.
