Our primary investment objective is to achieve a consistent positive real return (in international purchasing power terms) on our client’s invested assets.
To win a race, you have to be sure to stay in the race. We thus adopt a carefully monitored long term approach, with the emphasis on avoiding any permanent loss of capital. The cornerstone is a significant allocation to a limited selection of high quality companies at reasonable valuations. The combination of strong brand, healthy balance sheet, strong market position and stable margins allow such companies to consistently grow their intrinsic values over time, and generally facilitate a speedy recovery of share price after any market downturn. Alongside this core equity portfolio we invest in a small selection of contrarian based funds, where we believe that the fund manager has an edge in identifying significantly undervalued companies offering above average prospective returns. Where appropriate we also invest in regional specialist funds with a local edge.
As we do not believe that markets can be forecast over any short term period, longer term forecasts tend to be much more stable and accurate. Our capital allocation to the various asset strategies (including cash and fixed income), is driven by a long term forecast of the prospective returns for the various asset classes. We believe that this approach provides for stability and significantly reduces the risk of any permanent impairment of any part of an investment portfolio