Attitude to risk
It is not possible to make proper investment decisions unless both the investor and the adviser fully understand the investor’s attitude to risk and have developed a coherent plan to build this attitude to risk into the overall investment strategy. We work closely with the investor, using sophisticated techniques to fully understand this important topic before making recommendations.
We disagree with the overly simplistic approach to risk that is embraced by so many institutions. All too often an investor is pigeon-holed into a category such as “Low Risk” or “Medium” when of course in reality it is entirely possible for the same investor to adopt a low-risk strategy with some elements of a portfolio (eg pension rights) whereas other money (eg this year’s bonus) might well be earmarked for an aggressive play in emerging markets stocks. There is absolutely nothing contradictory about the same investor adopting both a low-risk and a high-risk strategy with separate elements of the same portfolio.
Quality, Quality, Quality
All asset managers are not created equal. We cannot stress enough the importance of dealing with high quality asset managers at least for the core components within your portfolio. Yes, by all means include some more aggressive holdings within your portfolio if you choose to but first and foremost you must remember the cardinal rule that protecting what you already have is the cornerstone of prudent financial management. We fully embrace this philosophy and we will always provide recommendations that include a substantial exposure to assets managed and / or guaranteed by well-known household brand name financial institutions.
Components of a well-managed portfolio
Back to basics here- We recommend that a portfolio be carefully constructed using any or all of the following asset classes, varied in proportions that suit the individual investor:
- Structured notes
- Real estate
- Managed funds
- Specialist funds
- Alternative investments
- Hedge funds
- Derivatives / options
- Private equity
As always, we invite interested investors to contact us using the form provided here to explore how we can work together to build a portfolio that matches your specific needs.
Our intention with all our clients is to build a relationship as well as to build a portfolio.