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Our investment philosophy


Our investment philosophy is client-centric. Everything we do is built around seeking to act in the best interests of our clients:

1.Your Investment portfolio should be built around your goals and values 

“If you don’t know where you are going, then any road will do” Alice in Wonderland

Your circumstances and preferences are the most important considerations when designing investment portfolios. We also treat as a priority your unique need, willingness and capacity to take investment risk

2. Ownership of Assets and Taxation

We believe that for all investors how you own your assets is one of the most important considerations when building an investment portfolio.

3. Asset Allocation

Time and time again the mix between safe (cash and bonds) and risky (equities and real estate) assets have been shown to account for the lion’s share of investment returns.  Getting the right mix for you is vital.


4.Diversification

Diversification is the closest thing there is to a free lunch. Proper diversification increases the likelihood of earning expected returns and may reduce risk by eliminating risks you are not paid for taking. Markets are drawn to a state of equilibrium where risk and return are related. Only non-diversifiable risks are rewarded with higher expected returns.

5.Rebalancing

Over time your portfolio will drift away from the desired asset allocation. Rebalancing by selling things that have gone up and buying things that have gone down is an important activity and emotionally difficult for investors to do themselves.


6.Costs Matter

All things being equal we prefer to invest in the lowest cost passive funds or low-cost “smart-beta” funds. However, as in all things, if client circumstances e.g. taxation or preferences e.g. Ethical investing, dictate, we will consider more expensive investments. However, keeping costs down puts the odds of success in your favour.


7.Emotions

Investors often exhibit behavioural biases that can lead to poor investment decisions. Overconfidence, self-attribution, mental accounting, searching for patterns, hindsight, regret, and fear are cognitive biases and emotions that an advisor can help overcome in order to promote both wealth and well-being.


8.Working with an adviser helps investors achieve their goals

Because we are emotional, studies show that DIY investors tend to do worse than investors working with an adviser. The media is partially to blame; but in the face of that marketing noise, investors must maintain their discipline and stick to a long-term investment strategy. Some studies conclude that individual investors underperform the market by as much as 5%, likely due to a lack of discipline that results in chasing hot stocks or hot funds or by attempting to time markets.


9.Capital markets do a fairly good job of pricing risk

Capital markets are not perfect and prices are not always right, but markets are so competitive that it is unlikely an investor can systematically profit from mistakes in the market at the expense of other investors. It’s a zero-sum game with costs, where the amount by which the winner wins, is equal to the amount by which the loser loses.

10.WE INVEST, WE DON’T SPECULATE

Our approach to investment is based on academically proven principles that are at the core of a successful investment strategy. You are not paying us to act on our hunches or attempt to predict the future.