Our investment philosophy is based on the following elements, which we consider critical to a successful investment strategy:
Evidence Justifies Approach
Investment strategies should be based on practical and academic evidence. That evidence should be regularly evaluated and the strategy updated as required. Hunches play no part in the application of a properly structured investment approach. You can be confident that the strategies applied to your situation are the result of rigorous analysis by some of the best financial minds from around the world. Enlarge image
Diversification Reduces Risk
Concentrating investments in a few assets will increase the risk profile of a portfolio. It will not generally increase expected returns. Some investors will do better than the market, some will do worse, but there is no way to know in advance which one you are likely to be. This is not a risk worth taking. Betting on individual shares should be avoided. We can structure your portfolio to include thousands of investments in a wide range of countries. Enlarge image
Asset Allocation Determines Returns
Certain broad groups of investment assets do offer greater expected returns along with greater risk. With professional advice these very broad asset classes can be used by investors to make calculated investment decisions appropriate to their circumstances. This allocation determines over 90% of portfolio performance. We will advise the asset classes that are most appropriate for you, and those that are best avoided. Enlarge image
Risk Requires Reward
Not all types of investments provide acceptable expected returns, given the risks involved. Often investors and their advisers seek to maximise returns with little awareness of the relevant risks. This can result in inappropriate investments and disappointing results. We always consider both risk and return when assessing investment options for a client. Enlarge image
Forecasting Creates Disappointment
There is no reliable and consistent way to predict the future or to act on information before the rest of the market. Expectations of future profits, losses and other events cannot be forecast with any certainty. We will help you retain focus on the important elements that do add value. It is better to work with the market than against it. Enlarge image
Always seek the most efficient means of making your investments. Frequent trading charges and high research costs are unnecessary, and reduce any available returns. Expensive fund managers provide no assurance of better returns and should be avoided. Enlarge image
By adhering to the above principles, and working collaboratively with you, we can create superior investment strategies with your financial goals in mind.
Our strategies are designed to help investors and trustees rest assured that they have taken a prudent, justifiable and readily understandable approach with their investment decisions.