Market volatility is always going to be a factor in a wealth management strategy. An objective stance, enlightened risk management and tax-smart investing are three rules that guide our investment decisions in all markets.
Guiding principles
Some core guiding principles that inform our investment decisions are:
- time in the market;
- the importance of re-balancing;
- the importance of income;
- a focus on after-tax returns.
We work closely with investors to understand their unique investment objectives and risk tolerances, and apply this information to establish an optimal mix of diversified asset classes.
Top-down approach
Once the asset allocation is determined, we use a top-down approach to security selection by:
- identifying global macroeconomic investment themes;
- strategically positioning client portfolios in the sectors or sub-classes that stand to benefit the most from secular and cyclical trends;
- embarking on a rigorous selection process to invest in the securities that are best positioned to outperform their peers.
Focus on cash flows and investment risk
We believe that, over the long run, the two most important measures of an investment portfolio's sustainability are how well it generates positive cash flows and how well it handles investment risk. We aim to invest in securities that provide investors with a stable, sustainable, tax-efficient flow of income. We strive to avoid investment fads and flavours of the day. As a result, our portfolios typically consist of well-known companies that make products we all use in our everyday lives. We also diligently monitor the various risks inherent in investment portfolios and apply the appropriate tools and techniques to reduce this risk.
