Investment Process
Clients are the starting point in all investment decisions we make. Therefore we tailor our style to meet their specific requirements. At the heart of this process is their attitude to investment risk and the need to construct an appropriately diversified portfolio.
Risk and Active Diversification
Risk is part of everyday life and cannot be eliminated. The same is true for investments. Higher risk can mean a greater opportunity for increased returns but the potential for increased loss also. A clients objective will therefore determine how much risk exposure they may need to take.
Risk can be managed through diversification. Diversification means spreading the risk of investing across a mixture of asset classes, industry sectors and areas of the world. Put simply, don’t put all your eggs in one basket.
Core and Growth Approach
The Roberts Partnership Core-Growth investment approach is a flexible way of structuring client portfolios to meet their long-term objectives.
The Core element of a portfolio focuses on delivering consistent returns throughout different market conditions. In order to do this, we use multi-asset funds, where the underlying asset allocation decisions are taken by the fund manager on a daily basis.
The Core approach blends together funds that are positioned appropriately to capture growth when the markets are rising and aims to preserve wealth when they are falling. It does not aim to match equity returns in strong market rallies, as we are attempting to reduce volatility for clients over the long term. Our experience tells us clients like making money, but not as much as they hate losing it.
As part of our discussion with the client about their attitude to risk, investment timescale and objectives, we will indicate the possible returns for the Core Portfolio over the medium to long term. If greater potential returns are required, then the investor should consider investing in Growth funds to try to achieve those objectives.
Growth funds provide the opportunity for higher returns if a higher level of volatility and potential capital loss is acceptable. Our globally diversified equity portfolio aims to deliver growth over the long term whilst retaining a
Income Investors
For some clients, the overriding objective is to generate an ongoing income. Low interest rates mean that it is harder to obtain an income that is above inflation after tax. This suggests it is unlikely that you will be able to rely on the relatively low risk cash or bonds to generate the income you require. We have previously highlighted that you need to take more risk to achieve a greater return. The same is true with income.
As with any portfolio it is important to have exposure to different assets and styles to diversify the source of income. We have used our collective investment experience to produce a specific Income Portfolio which aims to provide a reasonably high income with prospects for growth over time. We will tailor our approach to the client’s income objectives.
Summary
By carefully blending a range of different yet complementary funds together clients benefit from an actively diversified portfolio.
We review portfolios on an ongoing basis to ensure that it continues to meet their objectives and attitude to risk as reasonably and as practicably as can be achieved.
