Investment process

Risk budget. Asset allocation. Manager selection. Risk management…

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Our expert team will partner with you to manage your investments.

We begin by working with you to tailor a suitable mandate, with appropriate risk levels and benchmarks. Risk levels are set with reference to global equity markets. We measure investment risk principally (but not exclusively) by the volatility of portfolio returns over a rolling 36-month period. Focusing on your risk budget at the outset improves our ability to provide insight as to how your investment journey may look, whilst also allowing us to align your portfolio with your growth ambitions.

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Investment Process funnel diagram

Asset Allocation

Asset allocation decisions are shaped by our Asset Allocation Committee using several key inputs:

  • Asset class valuations and expected returns
  • Fundamental macro-economic analysis
  • Technical and quantitative analysis
  • Knowledge and experience of the asset allocation committee

These inputs are considered by the committee over a wide range of different time horizons. Reference is made to consensus opinion as part of the thought process, but it is not a constraint on any decision.

Manager Selection

Once the most appropriate asset allocation is determined for each portfolio, capital is assigned to the various asset classes via an allocation to third party managers by the Investment Committee.

The manager selection process uses both quantitative and qualitative analysis to differentiate genuinely skilful managers from those who deliver average or below average performance.

We use bespoke quantitative analysis tools to identify real manager skill, while the qualitative analysis focuses around consistency in the following areas:

  • The manager, their team and the firm itself
  • The investment process
  • The liquidity of the portfolio
  • Environmental, Social and Governance factors
  • Cost

If exceptional managers cannot be identified and the exposure to the underlying asset is still desirable, then we will use passive funds to implement the decision.

David Cooke, CIO

“By following this proven, repeatable process, we are able to identify the probability of outperformance in a statistically robust way and can make informed investment decisions that are tailored to the needs of each individual.”

David Cooke, CIO

Risk Management

The Investment Committee monitors multiple measures of risk across all portfolios, with a focus on the expected volatility of portfolios. If the output is at the top of the tolerance level for the given risk band, action will be taken to reduce risks until the portfolio is back in line with the respective budget allowance. Volatility will be measured over multiple time periods as part of risk monitoring, with portfolios being managed to a 36-month volatility time period.

The Risk Committee provides oversight and is responsible for risk management.

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Arrange a financial review

Get in touch to find out how we can assist with your investment strategy.

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Investments do not guarantee a return, the value and the income from them can fall as well as rise. You may not get back the amount originally invested
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