Our Investment Philosophy

There are numerous ways to approach the construction and ongoing management of an investment portfolio. We believe that investment success comes from the consistent application of a robust process. Whilst the investment advice is tailored to meet individual objectives, the process followed is always the same.

Investment advice delivered in isolation is unlikely to be relevant for an individual investor. We firmly believe that investment decisions should relate to financial planning objectives. Consequently, we encourage clients to provide a thorough disclosure of their financial arrangements to help ensure that the recommended investment strategy is suitable for meeting individual objectives.

The relationship between cash, fixed interest securities, equities and property (the four main investment asset classes), determines the level of risk within a portfolio and therefore potential returns. It is widely accepted that asset allocation has the biggest influence over the variants in portfolio returns. It is therefore vitally important that the most suitable asset allocation model is adopted, based on an investor’s objectives and attitude towards investment risk.

Investment markets often experience periods of volatility and can sometimes look expensive based on historic valuations. We believe that trying to time market entry decisions is a dangerous strategy as the biggest gains tend to happen quickly and often follow the biggest losses. For these reasons, we believe that trying to time the market is a strategy destined for failure. Furthermore, market timing is largely unnecessary when investing with a well diversified portfolio across the different investment asset classes.

There is a role for active and passive funds within a well managed investment portfolio. Rather than take an evangelical view of one option over the other, we appreciate that there are strong arguments for both approaches and accordingly we include both strategies in the portfolios we recommend.

The world of investing can be complex, however we believe in keeping things simple. Behind the scenes, there is a lot of science involved in our investment advice process, but we want every client to understand why we are making recommendations and how their portfolio is constructed to meet their own financial objectives.