Asset Allocation Philosophy
We have a clear Philosophy when advising our clients in relation to the Allocation of their Assets. We aim to clearly communicate this Philosophy to our Clients so that they understand their Investment Strategy and the roadmap ahead.
This Philosophy is understood by everybody in our business and ultimately dictates what recommendations we make to our clients. We break this Asset Allocation Philosophy down into 6 clear & concise points
Holistic Overview
Every investment decision needs to take account of the entirety of the Finances of You and Your Family including Pension funded.
Asset Allocation decision should never be taken in isolation and the big picture should be considered at all times.
Personal Cash Savings, while not an ‘investment’ as such, should be taken into account when understanding your Current and Target Asset Allocation
Risk Relevant
Your Investment or Pension Portfolio should be appropriately allocated to different asset classes and aligned to your:
Appetite to Risk
Capacity for Risk
Tolerance of Risk
Spending time considering your Risk Level is extremely important to ensure your Portfolio is commensurate to your needs.
Diversify
We adopt a multi-asset approach to investing whereby we consider all investible Asset Classes in constructing a Portfolio.
Diversification should be done to limit downside risk and not be too reliant on any one particular Investment Strategy
Portfolios should be constructed with Assets that have projected returns that are less correlated with each other will protect Capital in the downside
Understand
We want our clients to fully understand their overall portfolio, the percentage split of the Assets and the constituent holdings that comprise the Portfolio
We work hard to remain in close contact with our clients to update them on the overall macro economic and investment market update at all times
We only advise on allocating capital to Regulated Investments that have daily or monthly pricing. Furthermore, we need to be able to clearly articulate the intricacies of each investment security to our clients so that they can understand it
Long Term
When making investment decisions, our Philosophy is that it is “Time In the Markets”, not “Timing the markets” that matters
We believe that if you are looking to invest in the market and don’t have a long-term investment horizon, then you should consider whether it is appropriate to be investing in the first place. We recommend a minimum of a 5-Year Investment Time horizon. This enables investors to look through short-term volatility
Minimise Fees & Taxes
Unnecessary Fees and Avoidable Taxes should be kept minimal within an Investment Portfolio to reduce value erosion on an annual basis. We aim to reduce costs by avoiding unnecessary ‘layers’ of fees within Portfolios and selecting & building Portfolios that offer the best value for money.
We are very conscious of building portfolios that are as tax-efficient for the end-client(s) as possible.
“Most Advisors talk about their “Investment” Philosophy. We prefer to label it our “Asset Allocation” philosophy. We believe that this subtle change in terminology underlines our more ethical and holistic view of financial planning, as our definition recognises that non-Investment Assets (like Cash) play a very important role in a strategic asset allocation philosophy”