Our investment process is disciplined and transparent. Yet we retain the freedom to invest with conviction.
For each of our investment strategies, we begin with a strategic asset allocation. This acts as a reference point for our decision making.
To build the strategic allocations we analyse past and likely future performance from all major asset classes – equities, bonds, cash, property, private equity, hedge funds and commodities.
In creating a strategic allocation, we seek to achieve an optimal blend of these different assets. This blend is broadly diversified and – if bought and held for the long term – should deliver the objective of the investment strategy. The strategic asset allocation also reflects the amount of risk we are prepared to take in order to achieve the target returns.
Tactical asset allocation
While the strategic allocations provide a framework, our portfolios will deviate substantially from these, based on our assessment of the opportunities and risks across asset markets.
The degree of variation will depend on a number of factors, but we set no maximum or minimum limits for each asset class. It is the overall risk of the portfolio and the contributors to that risk that we monitor closely, to ensure that each strategy is run in a manner consistent with its mandate.
We also use our tactical allocation to introduce themes and ideas into our investment strategies. These are designed to improve returns by capturing the opportunities we see in the markets over the coming 3 to 18 months.
"Well done is better than well said." Benjamin Franklin
When constructing portfolios, we are focused on delivering the best value and returns for our clients, and are constantly assessing options for their investment potential, cost, risk and tax effectiveness.
Often the most appropriate investment will vary greatly between asset classes, regions, markets and sectors – and over time. We therefore invest in a range of vehicles, including directly-held securities, passive funds, active funds, and derivative- backed securities.
Within the team, individuals have responsibility for both portfolio management and investment research, specialising in a particular asset class, region or investment area.
Our approach to decision making is collegiate. We are a close-knit team taking decisions together, monitoring progress together and sharing responsibility for the results.