1. PHILOSOPHY

While investment performance hinges on many factors out of your control, such as the performance of the funds, you can control others. These are the ones we deem the most important in creating and managing a portfolio. Investors are rewarded in proportion to the risk they take. Diversification is an essential tool available. It enables you to capture broad market forces while reducing the uncompensated risk associated with equity investment. We will rely on sound research and data compilation over several decades for the identification of the multiple asset classes that will form the basis of any investment strategy.

2. BELIEFS

We believe that asset allocation primarily determines the results of a broadly diversified portfolio, and concentrate on getting this right for every client. Depending on your financial goals, we believe that the asset allocation of a portfolio (i.e. how it is split between the different types of asset classes , such as cash, equities, fixed interest, property etc.) largely determines the performance as opposed to individual stock picking*. Stocks and shares are risky - and so is avoiding them. However, we won’t take more risk than is absolutely necessary to achieve your objectives.

3. CRITERIA

Before making any recommendations, we undertake a thorough analysis of your attitude to risk and loss so that we can tailor the investment strategy to your personal needs. If you think that the potential gains to investing outweigh the costs, there is one last factor to consider: cost. We endeavour to minimise this as much as possible.

4. DISCIPLINE

This job does not end here! Your portfolio will require a regular review and possible rebalancing (back to the agreed strategy) to ensure that you remain on track to reach those all important goals. Investing can provoke strong feelings. In the face of stock market upheaval, you may find yourself making impulsive decisions or, conversely, becoming paralysed, unable to implement an investment strategy or to rebalance a portfolio as needed. Discipline can help you remain committed to your long-term investment plans through periods of market uncertainty. Use tax allowances wherever possible. You can’t control the markets, but you can control the effect of costs and taxes.

Remember the value of your investments can fall as well as rise and that past performance is not a guide to the future.

*Eugene Fama and Kenneth French (Nobel Prize in Economics 2011)