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

Generally, investment risk is expressed as volatility. This means the extent to which the returns from an investment fluctuate over time.

Investing in only one type of asset might maximise your potential return over the long term, but it also maximises your risk.

At its simplest, reducing risk boils down to don’t put all your eggs in one basket. For investors that means diversification or spreading investments across a range of assets (cash, fixed interest, property and equities).

By carefully blending a range of different yet complementary funds together clients benefit from an actively diversified portfolio. 

Using our experience and knowledge, we have formulated asset class parameters, which reflect different risk profiles. These range from Conservative (the lowest risk profile) to Growth (the highest). An indicative table is shown below.

These parameters are designed to be flexible as the most important thing is to ensure that capital is invested in accordance with the client's aims and risk preferences. We will make sure clients understand what we are recommending and ask them to confirm this to us before we proceed with any new investments.

We will then undertake to review their portfolio 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. 

To find out more about our investment approach click here.