How we Invest

Our Investment Philosophy

Markets are inherently uncertain. While we can’t predict the outcome there are certain characteristics that your portfolio will always have.

Simple Benchmarks

When measuring our performance it should be easy for clients to understand whether their portfolio has performed well or not. Our risk rated portfolios are measured against Morningstar equity/bond indices, with the weighting to each asset class depending on the level of risk.

Flexible Approach

Passive v Active. Growth v Value. Large companies v Small companies. We’re agnostic. We’ll consider any geography or asset class that’s appropriate and easily traded. We are simply looking for the best returns and the lowest risk. This of course is easier said than done, and we’re careful to ensure our portfolios are well diversified with a blend of funds to achieve the best outcome.

Investing Fast and Slow

While we seek to take a long term view on the investments we make, often things can change in the short term. Markets move fast and we need to act accordingly. We have a streamlined process for decision making and implementing trades and are not afraid to use it! It may sound strange but often there is a benefit to being unsure, to question our course of action, and then have the courage to make changes.

The Power of The Collective

Some investors feel they have an edge in picking individual companies. Unfortunately this is far less common than many will admit. Our edge is to play trends in the market and we express these convictions through collective funds. This may take the shape of a low cost passive tracker, a specialist fund manager or a trust that can purchase physical assets.

The World is Your Oyster

A more connected world means more connected markets. Our heart is in the UK, but our investment outlook is global. We’re happy to hold positions in specific geographical regions, when opportunities present themselves. We also like to invest in long term structural investment themes, which tend to be global.

The Investment Loop

Markets are uncertain and always will be. The essence of our job is to overcome this and take calculated risks.

Survey the scene

Understanding the investing environment is crucial. We use data from multiple sources to understand the direction of world markets and at what stage the global economy cycle is in. We also look for anomalies. What’s happening that shouldn’t, and what’s not happening that should? The aim of this is to make an assessment on which markets offer good value, and will provide us investment returns over the long term.

Asset Allocation

The next step is to fit our market assessment into a framework for investing. We have a formal quarterly meeting with the wider team to decide what proportion to invest in each market. As with any investment portfolio, the aim is to diversify across asset classes to optimise portfolio growth while managing investment risk.

Fund Selection

Once our asset allocation is agreed, we decide which opportunities to focus on. We’ll start by ascertaining the most appropriate type of fund for our investment thesis. For pure market exposure it’s a low cost tracker. But we may feel an active manager has a better chance of market outperformance. Then we’ll undertake comprehensive research and due diligence, looking for a good track record and clear investment view.

Tactical Adjustments

Even though we may feel we have our portfolios perfectly positioned, markets don’t always play ball. Our decisions and assumptions are constantly tested and reviewed, and we’ll change course if appropriate. In the real world of investing the process never ends, it’s a loop. Often many stages are happening at the same time. The result is a range of portfolios positioned to drive attractive returns over the long term.

Let’s Talk

Naturally it's free and without obligation. Call, or send us a message today, and let's get to know each other a little.