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Investment Process

Real-Return Focus

We look to generate inflation-beating returns over the long-term for all our clients. We work with each client to determine the most suitable long-term investment objective taking into account financial objectives, investment horizon, risk preferences and overall capacity for risk.

Asset Allocation

Once we have agreed a suitable long-term investment objective with our client, we determine an appropriate long-term Asset Allocation strategy. We review the Asset Allocation strategy annually taking into account the global macro-economic environment, the outlook for major asset classes and other factors such as market sentiment and momentum.

Portfolios are constructed in line with our annual Asset Allocation strategy and rebalanced when asset groups move significantly away from their target allocation. Tactical portfolio purchases and sales are also made as and when appropriate, taking advantage of short-term market inefficiencies as well as attractive investment opportunities as they arise.

To manage volatility and risk, portfolios are diversified across a range of different asset classes including cash, fixed income, equities, real estate and commodities, represented across a range of different geographical areas.

The above process is designed to provide a consistent and disciplined approach towards achieving our clients' inflation-related objectives. 

Investment Selection

Investments are primarily made in authorised funds including OEICs, Unit Trusts, Investment Trusts, ETFs, REITs, Hedge Funds and Private Equity Funds. There is additional scope to invest in direct equities to get access to interesting investment opportunities and to obtain useful diversification benefits.

We invest in both active and passive investment strategies depending on suitability, performance and cost. Active investments are closely compared with low-cost passive funds to justify selection. When choosing active managers we favour well-established, specialist managers with focused investment strategies and high conviction investments. Active managers also allow us to access investment strategies not available through tracker funds, providing useful diversification benefits as well as the potential for outperformance.

We focus on clear, simple and transparent investments avoiding complex and opaque strategies. 

Performance Measurement

We measure portfolio performance against three different benchmarks, the agreed long-term investment return objective, the most relevant peer group benchmark as well as a range of market related indices.