How our investment process works
When we build a client’s investment portfolio we start with a Strategic Asset Allocation. That is what we call the portfolio we believe is the best range of asset classes to buy and hold for the long term, assuming little or no ongoing management. We build this allocation by analysing the way different asset classes move relative to one another, how much risk we wish to take on in a portfolio and how we believe different assets will perform. We use this exercise to decide how much of each portfolio to hold in shares, corporate bonds, property and other asset types.
1. Helping you to take advantage of opportunities
Taking care of all the decisions in relation to your investment portfolio, our active approach to investment management ensures your investments continue to be invested in accordance with your risk parameters and strategic objectives. This allows us to react to new opportunities, threats or changing markets from across the globe on your behalf.
2. Keeping you informed
We will send you regular statements. Where relevant, we will supply information to help you complete your tax return.
3. Making informed decisions
Our Investment Team carry out ongoing and extensive research in to funds, companies and markets to help us make informed decisions on the most suitable assets and securities for you. They will then either choose from a portfolio of selected funds or build you a bespoke portfolio to meet your investment requirements.
Our Investment Committee meet quarterly or if there are any immediate needs to review investments and markets, and discuss tactical views. These tactical views are portfolio adjustments which are designed to enhance investor return and reduce risk. This allows us to control risks as well as capture opportunities and enables us to act quickly based market conditions, when other fund managers may continue to stick to a chosen strategy.
4. Absolute Return vs Gilts
For a long period of time we held the tactical view that the risk of losses within UK government bonds was not being fairly rewarded. Instead we held a portfolio of cautiously managed funds aiming for a small positive return in all market conditions. This is an example of a tactical move away from our long term expected portfolio.
5. UK equity mid-cap
Based on historic trends and forward looking opinions we have a bias towards medium sized UK companies compared to the standard benchmark. This is a long term view which we have present in all of our strategic portfolios.
6. A guiding hand
We firmly believe in making changes in a meaningful way when we have conviction in our views. We don’t tinker or try to time daily market movements as we think this risks missing out on market moves and increases costs.
We will make changes as small as changing our allocation to different equity markets, and as big as removing all exposure to a given type of asset altogether. The changes are applied to all of our Strategic Asset Allocations to give us the Tactical Asset Allocation we use in our clients’ accounts.