Our Asset Allocation Process
Our investment process is dynamic and flexible, in order to meet the specific requirements of each individual client.
We monitor economic, corporate and political influences around the world and assess their possible influence on the outlook for global equity and bond markets. We review this information at monthly meetings, and use it to formulate our general asset allocation policy. An optimum asset allocation relative to appropriate benchmarks is then applied to client portfolios according to individual requirements and attitudes to risk.
As active managers, we place stock selection at the heart of our investment process. We believe that growth in profits, earnings per share and dividends leads to share price appreciation. Our investment team uses its long experience of equity investing to select companies that offer growth potential at reasonable valuations and with strong finances. We take particular interest in stocks whose potential for growth may have been mis-priced by the market. We are also prepared to access the often greater growth potential of medium- and smaller-sized companies, provided that they meet our strict investment criteria.
We take a dynamic approach to bond investment, positioning our bond exposure according to our views on the outlook for interest rates, inflation, bond issuance and the wider economy. We use a mix of government and corporate bonds, with the balance between the two determined by relative valuation.
Overseas equity exposure is gained through the use of specialist funds, either Unit Trusts / OEICs or Investment Trusts. We select 'best of class' funds using a mix of quantitative and qualitative assessments, including meeting with external fund managers.
Financial markets and products evolve continuously. We are alive to new opportunities for our clients, including areas such as private equity, absolute return funds and investments which offer exposure to commercial property.
