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Investments

We take advantage of tax allowances as much as possible and where appropriate we use trust planning to further enhance your strategy.
We aim to help you achieve long term, consistent returns, in line with your values and objectives. We have strong beliefs when it comes to investing your money.

Investment philosophy

Our investment philosophy is the overall set of principles or strategies that guides and steers our investment decisions. It helps us to simplify a complex industry, allowing us to concentrate on our relationships with our clients, safe in the knowledge that we are doing our best to protect and grow their assets.

While investment performance hinges on many factors out of our control, most notably the return on markets, we can control other factors. These are the ones we deem the most important in creating and managing a portfolio such as the types of funds you invest in, the cost of the investments you choose and what you look for when choosing the investment companies you do business with. It is important we can justify investment decisions to our clients and make it clear why we have invested their money in a particular way.

We believe in diversification

One of the most important views to arise from modern portfolio theory is that investors should avoid concentrated sources of risk by holding a diversified portfolio.  There are three primary factors which influence portfolio performance; asset allocation, stock selection and market timing.

Diversification of an investment portfolio across a variety of different low correlated asset classes should help to reduce the overall level of risk compared with, say, a portfolio which only includes bonds.  For example, the inclusion of a small investment in a higher risk fund invested in a completely different area, in a portfolio comprising solely of UK bonds, can actually serve to reduce the overall level of risk in the portfolio when viewed as a whole.  This is because the behaviour of the higher risk fund differs to that of UK bonds in how it reacts to varying economic events.  An effective combination of different asset classes can significantly reduce the risk of a portfolio without reducing its potential for growth.

We believe that cost is an important investment criteria

We believe that cost is a critical factor in selecting a product or investment fund. We recognise the need to select companies with sufficient financial strength and adequate levels of service, however cost is one of the few known criteria at outset and it has a demonstrable impact on future investment returns. This informs both our asset allocation strategy and fund selection criteria.

In addition, every time an investment is bought and sold costs are incurred. These include the bid/offer spread, price effects, and stamp duty, and are not included in the Total Expense Ratio (which assumes the funds are to be held and not traded through the period). We aim to keep the Portfolio Turnover Rate, as low as possible using strategic asset allocation, and limiting the movement of funds wherever possible. The cost of a higher portfolio turnover is often hidden, taken out of investment returns.

We believe in strategic asset allocation

One of the most important investment decisions we make for clients is what assets to invest their money in. Depending on their financial goals we will build a corresponding mix of assets that produces the most appropriate level of risk and expected return. We firmly believe that asset allocation is the key, fund selection while important is secondary.

We provide independent advice because we believe that it is important that we are not restricted in any way at the point we recommend a product or fund to clients.