ur role is to utilise our experience and knowledge to formulate a suitable investment strategy within agreed risk parameters to assist clients in achieving their goals. We have access to many of the world’s best investment funds. We match our clients investment goals with those investment managers whom we believe are best in class, and will provide returns to our clients. We monitor our client’s investments and regularly review with our clients. When providing advice we consider the adverse impact of investment decisions on sustainability. As part of our research and assessment of products, we examine the Product Providers literature to compare financial products and to make informed decisions about Environment, Social and Governance (ESG) products. The consideration of sustainability risks can impact on the returns of financial products.
Many years' experience as advisers and an appreciation of Modern Portfolio Theory have led to a number of fundamental principles which are applied in advising clients on investment.
We believe in a systematic approach to investment designed to provide a robust strategy, incorporating:
- Investing only for the medium to long term: We do not recommend that clients invest funds required for short term objectives in anything other than cash or cash-like holdings.
- Prioritising asset allocation appropriate to a client's tolerance for investment risk since we understand that asset allocation is responsible for the vast majority of out-performance in any fund or portfolio.
- Diversification – by spreading investment across a number of asset classes (eg. cash or cash-like, bonds, property, equities) as well as across a number of geographic regions, volatility of the portfolio is reduced and, in general, returns enhanced.
- Rebalancing investments to take profits from asset classes that are doing better to boost asset classes that are not doing so well. This provides a smoothing of returns and reduces volatility of the portfolio as a whole: it also provides a control over the exposure to risk of a portfolio.
- Reducing the cost of investment as far as possible since cost reduces the return available to the client.
We do not believe in:
- Effective market timing – the ability to effectively time markets ie. I do not believe that it is possible to accurately predict the best time to invest or disinvest.
- The payment of high fund management charges when past performance does not justify them.
These basic tenets have led me to be most comfortable recommending investment funds for clients covering a number of different asset classes and to take a long term view of investment. Portfolios should be regularly re-balanced.
We employ a system of Core & Satellite investing. Whilst the majority of investments are managed within Asset Allocated portfolios, some clients like to hold a proportion of their monies in a "satellite" account. This allows the adoption of a more "personalised" approach by choosing specialised investments of particular interest to the client.
Given recent turbulent times in the banking sector many people are unsure as to where best to deposit their money. Confidence in many institutions has been undermined and there has been confusion in relation to the limits and extent of banking guarantee schemes. The bailing in of depositors in Cyprus has further worried already stressed depositors.
As a Deposit broker and Investment Intermediary we believe clients need to understand
- where their money is deposited,
- what rate of interest applies,
- what limitations on withdrawals apply and
- what guarantees are provided.
We do not handle client monies, we look to advise clients on the best possible institution that suits them and educate them in relation to counter-party risk, credit ratings, interest rates and together design a deposit plan that aims to maximise return but minimise risk.
We advise on both personal and corporate deposits and provide broad based advice so that even those institutions we do not hold an agency with must be considered when locating deposit options for clients. This differentiates us from the majority of brokers who are limited to advising on only those institutions with whom they hold an agency.