Our investment process is designed to contain risk and volatility to acceptable levels. We ensure that your portfolio is managed within the risk tolerance agreed with you at the outset, and reviewed on a regular basis or if your circumstances change.
We have extensive experience and investment in research and analysis, with skilled staff, software and systems dedicated to this process.
We use unit trusts extensively. This is in contrast to individual share holdings, offering wide diversification and a reduction in overall risk in our portfolios, adopting quantitative and qualitative measures in our fund selection process, taking into account the quality and long-term track record of each individual fund manager.
We achieve our returns through the combination of two distinct processes.
- Varying the allocation of portfolio across different asset classes (typically bonds, equity, property and cash) and different regions (e.g. USA, Europe, Japan etc.) as the prevailing global economic and political climate changes. The value thus added to the portfolio is known as the tactical allocation effect. Your investments are not shoehorned into pre-defined asset allocation weightings – they depend on your individual risk profile and the economic climate at the time of your investment.
- We further enhance returns through the selection of specialist managers within each investment category. This is in contrast to the commonly adopted approach of selecting managers with ‘broad’ mandates. Specialisation in today’s competitive market extends beyond asset class, and even beyond region. It can be beneficial to use a number of specialists within a segment of the portfolio. These might include, for example, a large cap ‘value’ specialist, a large cap ‘growth’ specialist, and small cap specialist.