Summary of Services
We offer bespoke portfolios tailored to your individual investment needs. So before making any investment recommendations we spend time gaining a clear understanding of your financial situation, return aspirations, risk tolerance and time horizon. Only then do we discuss how we would approach investing your money. We keep you regularly updated as to how your investments are performing and our investment managers are available to answer any questions you might have. Our aim is to form a long–term relationship with you so we can plan meaningful investment strategies, which are able to evolve as your needs change over time.
Our Approach
Our investment philosophy is based on a belief that in a world of instant communication, and instant decision making, short-termism is the biggest inefficiency in markets. In practical terms this means having the patience to wait until there is an opportunity to acquire high quality investments at attractive prices.You have a choice of benchmarks with which to measure possible performance. However, we prefer to use them as a medium–term guide to investment returns rather than a quarterly tool. This allows us to make investment decisions that are in your long term interests.
Our Strategies
We create bespoke strategies for you, which are shaped in broad terms around the following four strategy formats:
Defensive strategy
There are multiple options available when it comes to structuring a defensive portfolio, and each strategy comes with its own trade-offs. We apply a combination of different approaches to achieve the best return for a client. We would look to achieve, not guarantee, a total return of 4 to 5 percent per annum after all fees and charges, on a rolling three-year basis using a combination of corporate bonds, preference shares and property/infrastructure shares. Our defensive strategy uses the following investment approaches to achieve its aims:
- Corporate bonds, which are issued by companies where the issuer must repay the amount borrowed at a specified date in the future while also making annual interest payments
- Corporate inflation bonds, which are issued by companies where both the interest payments and capital repayment, are linked to a measure of UK inflation
- Out of favour bonds, which are where an improvement in the credit ratings of a selection of corporate bonds can produce capital gains. Any capital gains can subsequently be reinvested to produce more income
- Preference shares, which are shares that entitle the holder to a fixed dividend whose payments take priority over that of ordinary share dividends
- Property/infrastructure shares, which are shares that generate an income with a good link to inflation and whose assets are crucial to the operation of society
Forecasts are not a reliable indicator of future performance
Pre-retirement Strategy
The aim of the pre-retirement strategy is to achieve a growing income combined with some capital gains, such that the overall value of the portfolio increases at a rate in excess of inflation. As with the income strategy, it employs a range of different investment approaches to achieve its aims, from corporate bonds, to out of favours bonds and dividend growth shares. Please see list of pre-retirement strategy investment approaches below:
- Corporate bonds, which are issued by companies where the issuer must repay the amount borrowed at a specified date in the future while also making annual interest payments
- Core income generating assets, which are where the dividends of the investments have a good link to inflation. Examples would be corporate inflation bonds and infrastructure/property assets
- Out of favour bonds, which are where an improvement in the credit ratings of a selection of corporate bonds can produce capital gains. Any capital gains can subsequently be reinvested to produce more income
- Dividend growth shares, which are shares of companies that, as of a result of their long lasting competitive advantages, we believe can produce consistent dividend growth over time
Forecasts are not a reliable indicator of future performance
Growth Strategy
Growth strategies aim, not guarantee, to make a minimum of 30 percent total return (the sum of dividends and capital gains) over three years after fees and charges. We equate this to an out performance target of two percent per annum over a period of three years. Please see list of Growth strategy investment approaches below:
- The three-year investment time horizon is based on the belief that the biggest inefficiency in modern financial markets is time. So by having a longer time horizon than the market, the strategy can access profitable investment opportunities that may not be available to others
- UK shares are selected by looking for companies that have a long-term competitive advantage in an expanding industry with high barriers to entry. Individual UK shares usually make up around 70 percent of the portfolio
- Overseas shares exposure is achieved by either active funds or tracker funds. Overseas exposure usually makes up around 30 percent of the portfolio
Forecasts are not a reliable indicator of future performance
Income Strategy
The objective with an income strategy is to combine a growing income with modest capital gains. The income strategy employs a range of different investment approaches to achieve its aims, from corporate inflation bonds, to out of favours bonds and preference shares. By investing in assets whose dividends have a good relationship with inflation we try to maintain the purchasing power, in terms of the amount of goods it buys in the shops, of the income. Please see list of approaches below:
- Corporate bonds, which are issued by companies where the issuer must repay the amount borrowed at a specified date in the future while also making annual interest payments
- Core income generating assets, which are where the dividends of the investments have a good link to inflation. Examples would be corporate inflation bonds and infrastructure assets
- Out of favour bonds, which are where an improvement in the credit ratings of a selection of corporate bonds can produce capital gains. Any capital gains can subsequently be reinvested to produce more income
- Preference shares, which are shares that entitle the holder to a fixed dividend whose payments take priority over that of ordinary share dividends
- Property/infrastructure shares, which are shares that generate an income with a good link to inflation and whose assets are crucial to the operation of society
Forecasts are not a reliable indicator of future performance