Our investment beliefs are based upon a combination of rigorous academic research and real world evidence.
Equities have traditionally generated the greatest long term returns, but not many investors are comfortable with the volatility of an all equity portfolio, and in addition many do not need to take that level of risk to achieve their goals. We ensure all clients have a suitable asset allocation to fulfill their specific objectives.
To quote the late, great Jack Bogle, “You get what you don’t pay for.” Our belief is that every £1 you spend to access the markets is £1 less in your pocket.
Our portfolios are globally diversified and do not have a “home bias” towards the UK markets.
We believe the following is extraordinarily difficult to achieve; beating the market; picking funds, countries or sectors that will outperform in the future; or timing the market.
To obtain higher returns, one needs to accept more risk. There are no shortcuts. We ensure you take the minimum amount of risk required to achieve your goals and objectives.
In contrast to equities (dividend payments) and bonds (coupon payments), commodities do not deliver a regular cashflow, and we therefore consider holding them to be speculation rather than investing. Private equity lacks the transparency and low fees that are the core of our investing beliefs.
For example, we do not include high yield (junk) bonds in our portfolios as in our view they have unattractive risk/return profiles in turbulent markets, and minimising portfolio falls is important to us and our clients.
Over time, equities will tend to outperform the other constituents in the portfolio, and if there were no rebalancing the overall portfolio would tend to become more risky as the equity component increased as a percentage of the total portfolio over time.
Time and time again, the investment community conjure up a complex ideas that seemingly give great returns with little downside, only for the strategies to unravel when the market has a downturn. See the financial crisis of 2007-2008 as an example. We prefer a straightforward, transparent approach.
Based on the above our portfolios are transparent, low cost and globally diversified.
Simple, but effective!