Portfolio Management

We employ a fiduciary approach to the management of all portfolios. Our investment philosophy is based on strong academic and scientific knowledge, grounded in Modern Portfolio Theory and strongly influenced by diversification strategies developed by Nobel Prize winning financial economists.

We see our role as partner/financial coach to clients that we work with, a trusted relationship we do not take for granted, but expect to earn through excellence and service, quality and integrity in what we deliver.

Our philosophy encompasses:

An acceptance that markets are efficient. At least insofar as we cannot gain an advantage directly, or via a delegated manager, of any perceived pricing imperfections. This belief is supported by an overwhelming weight of evidence from impartial academic research.

That risk and return are related (there is no free lunch, but neither is there any additional reward for taking speculative or concentrated bets – risk must be defined and appropriate).

That portfolio structure and efficient implementation hold the keys to establishing and maintaining an effective investment portfolio.

That we should manage with discipline the variables of:

• Asset allocation (the mix of shares, fixed interest securities and cash)
• Diversification (by security numbers, regions and most importantly asset class)
• Tax efficiency and total costs (expose and eliminate hidden embedded costs and the drag of paying too much tax – both are elements of poor structuring).