Evidence Based Asset Management: Helping you make the right choices

Don’t worry if you’re confused by the enormous amount of choice in today’s investment market; most people are. That’s why we’re here. We sift the wheat from the chaff and we keep you away from expensive, funds and investment products that appear ‘too good to be true’.

The approach we take is logical, evidence based and transparently charged. We’ll walk you through the entire process, answer all your questions and then meet up with you regularly to keep you updated and to advise you of any changes that we recommend.

We can demonstrate our success using 26 years of simulated performance and the actual fund performance that our clients have enjoyed during the last 10 years. This includes our ‘safe pair of hands’ approach during the global financial crisis.

1. Understanding your attitude to risk

To start with we’ll establish whether you want to take investment risk with your money? Everyone wants large gains but as risk and return are related, understanding the amount of investment risk you are willing to accept is key to successfully reaching your financial goals.

You have to ask yourself two questions: How large a return do I need and how much risk am I prepared to accept?

2. Asset Management

Once we’ve established your tolerance to investment risk we’ll spread your money as much as possible across asset types. This is diversification. Or simply put, we won’t put all your eggs in one basket.

This style of Asset Management is central to Modern Portfolio Theory as first published by Harry Markowitz back in 1952. Markowitz went on to receive the Nobel Prize for economics in 1990 and his research remains the basis for our investment strategy today.

He established that the most efficient portfolios are created when the maximum mathematical return for a given level of risk has been established.

3. Your Optimal Portfolio

We use this work as a starting point. Then we apply scientific research (the 5-factor model) including a simulated returns programme created by Dimensional Fund Advisors.

This allows us to view the historical movement of major global indices since 1956. These indices are used as the target benchmark by most funds.

We combine this data with your attitude to risk to create an Optimal Portfolio that is uniquely considered to match your needs and offers maximum growth potential.

4. Portfolio Rebalancing

Over time, as the funds within each asset class perform differently, the weighting between the funds, and therefore the asset classes, may change. So we’ll review your portfolio every year to enable us to rebalance it. This involves (with your agreement) selling units in some funds and investing the proceeds in others.That way the percentage holding in each fund is restored to the same percentages initially selected.

Please call us now on 020 8943 9229 to arrange an initial meeting.