We offer our investment advice on an ‘independent’ basis. We take a pragmatic approach to using different styles and philosophies within portfolios that we create. As part of our advice process we consider whether Managed Portfolio Services, Individual Funds, Multi-Asset funds or ‘in-house’ constructed portfolios could suit the client’s requirements for growth and efficiency. Where a range of investment funds is recommended we may also recommend a suitable investment platform for our clients to use, in order to make looking after their investments easier. We provide all of our investment clients with the option of an on-going investment review service. As part of this, we monitor the client’s circumstances, and market conditions, and recommend changes where necessary.

 

Whilst we recognise that many fund managers fail to outperform their market sectors, we still believe that good fund managers tend to avoid the worst extremes of the market and can add real value to returns, especially at times of economic change. We tend to recommend fund managers who have long track records of outperforming their sectors, and whilst fund managers of such high calibre can be hard to find, they do exist. We aim to meet as many of these fund managers as possible, to listen to their views and to question them on any specific points of concern. We believe that our direct access to fund managers and their researchers puts us in a particularly strong position to assess whether their funds are right for our clients.

 

We strongly believe in the power of real assets when investing for the medium-term or long-term. Studies such as those performed by William Bernstein, author of ‘The Four Pillars of Investing’, show that from year 1901 to year 2000 stocks rose by an average of 6.45% p.a. after inflation, whilst bonds returned an average of 1.57% p.a. after inflation.

 

Another in-depth study called the ‘Sandler Review: Medium and Long-Term Retail Savings in the UK July 2002’ revealed that “the asset allocation decision is by far the most important factor in determining long-term returns.” For this reason we always aim to achieve an asset allocation that will provide the best potential for growth within the agreed level of volatility. We also strongly recommend that portfolios are reviewed at least annually. This is to ensure that their asset allocation remains suitable for them, and it also enables them to benefit from our latest research.

 

We always consider our clients’ likely future cash needs, and their desire for a ‘comfortable’ cash reserve, before making an investment. In some cases this may be a few thousand pounds, whilst in other cases it may be several hundred thousand pounds. We appreciate the concept of Behavioural Finance, in particular that many clients feel more strongly about losing money than about making it. We understand that our clients’ ability to ‘sleep comfortably at night’ is often more important than obtaining a very high return on their assets. We consider how much risk our clients need to take in order to have a strong chance of meeting their objectives, and take into account how much they could afford to lose.

Where we recommend an ‘in-house’ portfolio solution, we use the services of a specialist fund research company to short-list individual funds for our closer scrutiny. Alternatively, we may research and recommend a suitable discretionary service. Either way we ensure that we remain close to our clients’ needs and can make alterations to their investments rapidly following reviews.