OUR INVESTMENT PROCESS
Our investment process originates with the Asset Allocation Committee’s periodic review of developments in the macroeconomic landscape and financial markets. Inputs from this review are used to formulate investment strategies that reflect our long-term views and model wealths covering a whole spectrum of risk profiles.
With these model wealth’s as guides, individual wealth’s are constructed in accordance with clients’ objectives, horizons, and risk profiles, and the attendant internal, legal, and regulatory considerations. The allocation of fixed income and equity assets is executed to meet a wealth’s target durations and equity exposures. Wealth’s are reviewed on a regular basis against corresponding benchmarks and rebalanced to realign investments with the original target allocation consistent with clients’ goals and risk tolerance.
Determining the Assets Allocation
In selecting the assets for our wealth’s, we undertake extensive research through internal and external analysis.
We monitor economic, corporate and political influences around the world to assess their possible influence on the outlook for global equity and bond markets and identify emerging trends.
This analysis helps inform the decisions of our monthly Asset Allocation committee which includes all of our most experienced investment managers.
Tactical asset allocation will be undertaken from time to time in order to exploit opportunities as they arise.
The Optimum Way to Access Each Assets Class
Having identified as asset class as a target for investment we research the best approach to gain the desired level of exposure.
This might be through a quoted company involved in the sector, a global fund specialising in the sector or through a commodity fund.
To provide diversification we may make several investments in the chosen asset class .
The Specific Investments
As active managers, we place stock selection at the heart of our investment process.
The selection of the individual investments involves a considerable amount of internal and external research activity which enables us to focus our attention on the most promising potential investments.
We take particular interest in stocks whose potential for growth may have been mis-priced by the market.
We may access the often greater growth potential of medium- and smaller-sized companies, provided that they meet our strict investment criteria.
Constant Monitoring and Review
One of the most important lessons from recent market turbulence is the need to have a disciplined process of monitoring and review of investments.
We do not believe that the ideal asset allocation can be set at a point in time without further review.
We constantly review asset allocation and conduct formal reviews at our quarterly asset allocation meetings.
Often our view has not changed significantly and the drivers or trends have remained consistent but the discipline of a regular and full review is essential to ensure that key asset allocation adjustments are made.
We hold weekly meetings to review the wealth’s formally and the markets in general, and a daily review where we discuss specific investments. This ensures that our investment process remains dynamic and flexible.