Our investment philosophy

Our investment philosophy outlines the guiding principles that shape our investment advice for you.

Our investment philosophy reflects our beliefs about managing your money and your involvement in investment decisions. We want you to feel empowered and informed, so please don’t hesitate to ask us any questions – we’re here to help you protect and grow your wealth.

To learn more about our investment beliefs and how we collaborate with you to invest your money, click on the links below.

Investors should understand the reasons for investing and how their portfolio is designed to meet their goals

The world of investing can be complex and often not transparent. We believe in keeping things simple.

Understanding your needs is the first crucial step in our investment approach. Through a conversation with you, we assess various factors including:

• Your need for capital security
• Your age and stage of life
• Family commitments
• Income and growth requirements, including any future regular income needs
• Funding requirements for specific items like school fees
• Investment time horizon
• Exposure to interest rate and inflation risks
• Impact of charges and penalty fees
• Attitude to risk, risk tolerance, and capacity for loss

By gaining a comprehensive understanding of your financial planning objectives, we can determine the appropriate level of investment risk to consider in our recommendations.

A conversation about risk and its many dimensions is the essential first step when investing

Risk and reward go hand in hand when it comes to investing. It’s crucial to acknowledge that all investments come with a certain level of risk before making any decisions.

Taking on risk offers the potential for higher investment returns as a reward.

For long-term financial goals, investing in riskier asset categories such as equities is often more beneficial than solely relying on safer options like cash.

However, if your financial goals are short-term, it may be appropriate to focus on cash investments.

To help understand risk we break it down into four elements:

Different types of investments come with their own set of risks. Some common risks include:

  • Volatility: Investments can experience fluctuations in value over time.
  • Liquidity risk: The ability to quickly access your invested money when needed.
  • Company risk: The possibility that a specific company fails or faces financial difficulties.
  • Default risk: The risk that a bond issuer is unable to repay the borrowed amount.
  • Emerging market risk: Investments in less established and transparent markets may carry additional risks.

These are just a few examples of the risks associated with investments. It’s important to understand and consider these risks before making any investment decisions.

Investing always involves risks, and even keeping your money in cash has its own set of risks. These risks include:

  • Inflation risk: The risk that the value of your money decreases over time due to inflation.
  • Default risk: The possibility that the institution holding your deposits may face financial difficulties.

Despite these risks, cash investments may still be suitable for certain investors, especially for short-term savings, as they align with their specific needs and objectives.

Risk attitude is primarily determined by an individual’s psychology rather than their financial situation. Some people may feel anxious and distressed when facing investment volatility and the possibility of losses, while others may be more comfortable and relaxed with these uncertainties.

These are just a few examples of the risks associated with investments. It’s important to understand and consider these risks before making any investment decisions.

Understanding your financial capacity to handle risk is important. It involves assessing the potential impact on your finances if things go wrong. We consider factors such as your wealth, income, liabilities, and investment timeframe to determine your risk capacity.

Different from your attitude towards risk, which is a personal preference, we aim to align your investment risk with what you can afford. Using a specialised risk profiling tool, we create an unbiased view of your risk profile as a starting point for our discussion. We’ll explain the implications and work with you to ensure it fits your specific situation.

By understanding your risk capacity and having a conversation about it, we can make informed decisions about the level of investment risk that suits your financial circumstances, rather than relying solely on your comfort level.

Investing for the long term is very different than saving for the short term

Investing for the long term involves considering the impact of inflation and the potential benefits of riskier assets.

While the desire for safety is understandable, the long-term value of investments in real assets like equities, property, and commodities can outweigh the seemingly safer option of cash deposits.

However, the decision is not as straightforward as it may seem.

Our view is that basing investment decisions on the longer-term historic behaviour of asset classes enables investors to participate in market growth. But that regular review is critical.

The bulk of long-term returns come from asset allocation

Asset allocation plays a crucial role in portfolio returns, with strategic allocation being more influential than other factors like stock selection or market timing. To achieve the best results, investors and advisors should focus on constructing a suitable asset allocation model aligned with individual investment objectives and risk tolerance. This is our primary focus when providing investment advice.

An analogy can be drawn to baking a cake, where the right proportions of ingredients matter more than their source. Similarly, we use a risk profiling tool to propose an appropriate asset allocation based on historical data. We will discuss and ensure your comfort with the recommendations.

Diversification using mainstream asset classes may reduce risk without destroying returns

Diversification is a strategy summarised by the saying “Don’t put all your eggs in one basket.” It involves spreading your investments across different options so that if one investment performs poorly, others may compensate for the losses.

A diversified portfolio should have two levels of diversification: among different types of assets and within each asset type.

This means allocating your investments among stocks, bonds, cash, and other categories, as well as distributing investments within each category.
Investors often find it convenient to diversify within each category by investing in mutual funds (unit trusts) rather than individual assets.

Mutual funds pool money from multiple investors to invest in various financial instruments, such as stocks and bonds. By owning a small portion of many investments through a mutual fund, investors achieve broad diversification.

We collaborate with specialised fund managers to build portfolios that are diversified across asset classes and individual stocks. Importantly, these portfolios align with the determined asset allocation suitable for you.

Costs are certain and returns are not – so they deserve your attention

Reducing costs is a sensible approach as costs are certain while fund performance is not. However, not all costs in fund management are transparent.

There are three main costs associated with investing in funds:

• Annual Management Charge (AMC): This is the fee charged by the fund manager.
• Total Expense Ratio (TER): This includes the AMC along with legal, audit, depositary, safe custody, and other costs.
• Trading costs: These are the expenses related to buying and selling investments within a fund. They encompass stamp duty, bid/offer spreads, stockbroker commissions, transaction settlement costs, and more.

While TERs do not capture the entire cost of running a fund, they are a reliable indicator of fund returns.

Tax & access are important

We aim to make your investments tax efficient by utilising pension wrappers and ISAs. These help reduce the amount of tax your investments will incur.

In addition, we use technology platforms called wraps or fund supermarkets to hold your investments. These platforms offer security, easy access to your investment valuations, and tax wrappers such as pensions and ISAs. They also provide cost-effective options for future fund transfers if necessary.

Investment success comes from the consistent application of a robust process

We have a structured approach to building and managing investment portfolios. This helps overcome emotional biases and ensures the best decisions are made for our clients. Our consistent multi-stage process is designed to provide suitable advice tailored to individual objectives.

Regular progress reviews are essential to stay on track with your financial plan. We will work with you to determine the most effective way to conduct these reviews and ensure your investment strategy remains aligned with your goals.

Success is frequently determined by what you refrain from doing as much as by what you choose to do.

We follow a set of standard rules for all portfolios, unless clients request a customised approach.

•  No individual bonds/shares
•  No direct hedge funds
•  No direct unauthorised funds
•  Only use funds run by FCA regulated managers



Remember, we are here to help you protect and grow your wealth – please don’t hesitate to ask us any questions.

All investments carry risk. These are a few of the important ones.

  • The risk that the buying power of your capital decreases over time.
  • The risk that the growth you experience is variable.
  • The risk that you might get back less than you invested.
  • The risk that you do not achieve one of your objectives.

Contact Us

Take control of your financial future and discover how we can strategically invest your money to help you achieve your goals. Contact us to arrange your initial first consultation at no cost.