Our Investment Process
Capital preservation is our highest priority - we take a tactical, absolute return approach to investing and focus on total returns.
A crucial factor in the successful management of a client’s wealth is a deep understanding of both the fundamental objectives each client has concerning their investment assets, and the manner in which they want them to be managed - this requires addressing a variety of issues which go well beyond standard risk or return objectives.
A truly customised investment portfolio should be a clear reflection of the individual clients core beliefs and views concerning investing and the financial markets. It is crucial to understand each clients investment philosophy because it ultimately determines the principles and methods by which the investment strategy is implemented.
Though each investor should logically define their own investment philosophy, in practice, most mandates are based upon a few simple “tick-box” directives contained within the documentation drawn up by their bank. Through a comprehensive and strategic dialogue we support clients in the often complex process of developing and refining their individual investment philosophy – thereby ensuring the establishment of clear portfolio implementation principles that are in line with their personal preferences and approach.
Investment Strategy Development
We believe in diversifying portfolios globally to take advantage of opportunities wherever they may exist - capitalising upon returns across different economic cycles, business cycles, stages of economic development, geopolitical arenas, or financial markets.
Our investment strategy is based upon a strong foundation of fundamental and objective economic analysis – and each and every investment decision we make relates directly back to this strategy. Such critical objectivity in our analysis of economic and capital market conditions often leads us to acting contrary to common “herd” mentality.
Customised Asset Allocation
We create fully customised portfolio structures for each client partnerhip in strict accordance with their individual investment objectives, philosophy and requirements - as such, we have no “model” portfolios.
We invest only in a well-diversified selection of fundamentally-based, high conviction ideas - rather than being driven by “benchmark" allocations, and we never invest just “to be in the market”.
In terms of performance, asset class selection is by far the greatest contributor to returns. However, most wealth managers must limit the range of asset classes they consider in order for their portfolios to be deliverable to large numbers of clients.
In contrast, we take an institutional approach when constructing portfolios and consider potential investment opportunities across the full spectrum of possible sub-asset classes across global investment markets – thereby providing greater portfolio stability and allowing for higher potential risk-adjusted returns.
We are free from all conflicts of interest and are totally unbiased in our investment product selection process - there are no internal sales pressures or policies driving the use of in-house funds or expensive, fee-generating products.
Using market leading analytical tools, we are able to identify, analyse and select leading managers in their field of expertise and who have proven themselves in terms of absolute or relative performance - including specialised managers and sophisticated solutions often not available via private banks.
This allows us to utilise only the best investment products when implementing investment strategies, and to construct portfolios which are only comprised of investments that are always amongst the best in their category.
Systematic, Real-Time Monitoring
Successfully managing portfolios in today’s volatile and uncertain markets requires a constant, real-time commitment - however, most wealth managers simply lack the time, resources or tools in order to do so.
Dedicated to managing only a select number of client partnerships enables us to systematically monitor each of their portfolios on a continuous, real-time basis.
Market leading, institutional-grade portfolio systems allow us to monitor every aspect of each portfolio and quickly detect any relevant issues – so that we can react quickly and proactively.
Performance Measurement & Analysis
Detailed, ongoing performance analysis of a portfolio is an essential part of an effective monitoring process. Systematically analysing the performance of every component of a portfolio provides the level of insight necessary for fast and informed decision-making.
Importantly, performance measurement is only half of the analysis – it is critical to know the level of risk taken to achieve the returns. Our sophisticated systems provide advanced risk/return ratios and volatility analysis of portfolio positions, enabling us to quickly take any corrective action to ensure that the portfolio stays within the required objectives of the client.
Proactive Risk Management
Preserving wealth in today’s volatile and uncertain market requires a thorough understanding of both the potential risks in the marketplace and a detailed analysis of their possible impact on a portfolio.
Though proper asset allocation and diversification play a key role in reducing overall portfolio risk, we systematically monitor and analyse specific sources of potential risk including foreign exchange risk, interest rate risk, credit risk, political risk, regulatory risk, and market volatility. We analyse how these potential risks may affect each portfolio, and decide how and when to take measures in order to reduce their impact.
Proactive risk management is an integral part of managing our client’s assets – starting at the portfolio construction and asset allocation stage, and every day from then on.