Investors are faced with a plethora of choice in how to invest and we often find our industry is full of noise, but lacking in shared insights. Perhaps somewhat surprisingly, given what you read and hear, success as an investor comes from having a sensible plan and executing a few basic functions exceptionally well.
Many investors are either too cautious, too aggressive, or are responding to emotional pressures caused by rising and falling markets, causing the tendency to ‘buy at the top’ and ‘sell at the bottom’. Few consistently market-beating fund managers exist over the longer term, despite what the adverts might lead you to believe.
Our approach is different. We will invest your wealth using a practical framework that provides a robust, prudent and diligent process, focused on your long-term financial journey.
We will help you to invest and structure your wealth to meet your goals and aspirations, both today and in the years ahead. If we can stop you worrying about your investments, then we will have succeeded.
Our investment solutions are implemented using products with a focus on quality and cost-effectiveness. They are designed to capture market returns and are rebalanced regularly to maintain risk and return within given parameters. They are an effective, logical and offer an evidence-based approach. As independent advisers, we are always mindful of clients’ existing holdings and, where deemed sensible and appropriate, we will retain them.
Our investment process is based on six evidenced-based actions that we believe will deliver you investment success.
Structure the right portfolio
Our comprehensive planning process delivers the right mix of assets for your financial goals.
Diversify to reduce risk
By investing across asset classes, companies and geography, we achieve the best defence against market uncertainty and risk.
Protect against inflation
To sustain your wealth in the years to come, it is critical that your portfolio can defend your purchasing power against inflation.
Reduce costs to get a fair price
Managing the costs of your investments will ensure that you get the benefits at fair and competitive price.
Control emotional decisions
Our role is to coach you to avoid ‘buy high’ and ‘sell low’ emotional doubts and provide information and reassurance.
Rebalance your portfolio
Keeping your original asset mix requires rebalancing on a regular basis to avoid taking on volatility and risks beyond your tolerance.
Our approach is driven by research, evidence, and modern investment theory. These fully support the use of low-cost fund managers that endeavour to capture as much of the market return as possible. We believe that:
1. Markets are efficient
We believe that the market mechanism for pricing financial assets does so efficiently and fairly, based on supply and demand. Consequently, the price of a share in a company will reflect all the publicly available information in the market.
If the markets work well, the scope for investors to beat them is dramatically reduced. So we don’t try to beat the markets. We deliver returns as near as the markets deliver, with the least amount of risk to you.
2. Risk and Return go hand in hand
If you believe that markets work then it must also be true that risk and return go hand in hand.
Investors seeking high returns for low risk can only expect disappointment. Deciding which risks to take and which risks to avoid forms the core of our philosophy and determines the structure of our client portfolios.
3. Diversification is the most effective protection against investment risk
Asset classes and stocks that perform well in different investment conditions can offer investors a smoother return when combined. By diversifying investments across asset classes, whose return patterns are entirely independent of one another, the risk of a portfolio can be reduced by a quarter.
We make best use of the diversification benefits that different asset classes can offer.
The value of investments and the income from them can fall as well as rise, and you may not recover the amount of your original investment.