Always for you: Our investment philosophy

Once we have created your Financial Plan, we are likely to then build an investment portfolio to make the plan deliver the future life of your choosing.  The Financial Services Industry would like us all to believe that there exists a dark art to creating investment returns; there isn’t.  With the right, disciplined and structured approach, we can dramatically increase the way that your money is invested properly, not speculatively.

We adopt 10 key principles of investing –

  1. Have faith in the future – By long-term investing in capital markets, you should reasonably expect to be rewarded with a real return. We accept that publicly available information informs the price you pay for an asset and second guessing ‘the market’ is foolhardy.
  2. Asset Allocation is vital – The decision as to what proportion of your portfolio is strategically invested in each of the 4 main asset classes (Cash, Property, Fixed Income and Equity) is the most important investment decision we can take together to manage risks and create returns.
  3. Diversify globally – Embrace a globally diversified investment approach by widening your investment universe beyond the UK market, reduce the impact of geographical shocks, spread risk and increase the reliability of outcomes.
  4. Rebalance back to the model – Once invested, the proportion of money in each asset class will change, rebalancing back to the Asset Allocation and Diversification models, ensures that you ‘sell high’ and ‘buy low’.
  5. Avoid market timing – With the right disciplined approach and time horizon, accept that no one can accurately gauge when is the best time to invest. Patience and control are vital – the cliché ‘time in the market, not timing the market’ is the long-term approach to adopt.
  6. Manage your emotions – Never underestimate the potential impact of the Greed v Fear battle that resides within us all. It’s not easy, but to control your behaviour, by not panicking in times of market volatility you will avoid reacting to short-termism and making bad investment decisions. In contrast piling your money into a fad or theme is very unlikely to be a successful long-term investment strategy.
  7. Be cost effective – Keep a keen eye on incurring any unnecessary investment costs in the desire to consistently outperform the market. Make sure that you are not paying more tax and costs than are legitimately necessary as not doing so is a sure-fire way to reduce your real investment return.
  8. Accept that there are no ways to guarantee positive investment returns – The ‘low risk, high return’ investment doesn’t exist. Investment risk can be quantified and understood and needs to be embraced to a lesser or greater extent to create the investment returns that your plan requires, balanced with your opinion and appetite.
  9. Maintain independence and clarity of thinking – We avoid all conflicts of interest when creating investment portfolios. Investment decisions are based on academic and quantifiable evidence, not subjective preference and opinion.
  10. Focus on what you can control – Use energy to impact upon what can be controlled and influenced via adopting the above 9 key investment principles. It’s not easy to do so but accept that the consumer press typically exists to sell papers, and the pub/golf club investment guru wants you to envy or emulate them, not take responsibility for your investment advice and provide you with the returns your efforts deserve.