Investment Philosophy

Asset allocation

“Tis the part of a wise man to keep himself today for tomorrow, and not venture all his eggs in one basket.” – Miguel de Cervantes, Don Quixote de la Mancha, 1605.

Diversification has been a key component of asset allocation for some time.  An investment specific decision is preceded by an asset allocation decision and is therefore the most fundamental of investment decisions.  Asset allocation decisions account for 91.5% of the variation between returns on different portfolios, therefore holding the right mix of Growth (eg. equities) and Defensive (eg.bonds) is instrumental in determining the fluctuations in performance outcomes.  We therefore place significant value on this process and designing the asset allocation is an educated and partnered decision with our clients.

Investment advice

We use our investment knowledge and that of other expert investment professionals to select the underlying investments across each asset class.

We believe using a combination of index and active management are complementary in driving performance whilst managing fees over the long term.  John (Jack) Bogle and Warren Buffett are two of the world’s best investors and prove the merits of each investment methodology as they champion indexing and active management respectively.

Warren Buffet advocates that an active manager can add value by applying their discretion to select specific companies that outperform the market.  Active managers apply extensive analytical research including understanding: a business; industry;management; financial measures; and the outlook to find value against current market prices.

Bogle founded the Vanguard Group mutual fund company in 1974, one of the world’s largest and most respected mutual funds organisation.  He advocates low-cost index funds that mirror the market as a whole and believes that over a long timeframe very few active managers and especially retail investors are able to beat the market.

Investment markets are volatile and we look to design portfolios in line with our client’s asset allocation and we are diligent in selecting the investments within each asset class.

We advise clients on how to invest their wealth to manage risk and optimise the potential for risk adjusted returns to protect and grow wealth.