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.

    1

    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.

    2

    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.

    3

    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.

    4

    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.

    5

    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.

    Our Portfolios

    We have 5 levels of risk. Simply find the description that suits you and then choose your investment objective: Growth, Income or Responsible.

    1

    Defensive

    I am not a big fan of risk, but I would like a better return on my money than a bank account can offer.

    2

    Cautious

    I want to make some money over the longer term but I don’t need to take too much risk. Let’s play defence more than offence.

    3

    Balanced

    I like my defensive assets and growth assets to live in perfect harmony, to provide opportunities for growth whilst mitigating exposure to downside risk.

    4

    Adventurous

    I am prepared to take more risk to maximise my returns. There may be bigger ups and downs on the journey, but I am in it for the long run.

    5

    Global Equity

    Take the handbrake off, I want the most growth possible. I am happy for a small amount of diversification but this should primarily be an equity portfolio.

    Fact Sheets

    2 Dots and hollow square graphic 2 Dots and hollow square graphic

    Ethical investing
    in numbers

    5

    risk rated portfolios focusing on investments that have social and environmental benefit.

    3

    external members of P1 Ethical 100% Oversight Committee.

    69%

    funds rejected. Nearly seven of every ten funds analysed do not meet the standard for our responsible range.

    0%

    invested in companies that are predominantly involved in the production of coal, oil and gas.

    100%

    funds are signatories to the UN PRI, adopt the principles of 2020 UK Stewardship Code and invest in line 
with the UN Global Compact.

    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.

    Contact us