Certain precepts shape the advice that we give our clients. The most important of these include:
Asset allocation is the primary determinant of long-term
returns and volatility of returns.
The calibration of risk is of prime importance in an
Investors should understand the risks that they incur and
avoid risks for which they are not compensated.
Economy, simplicity and reliability in an investment program
enhance the likelihood of success.
Investors who take a long-term perspective and can withstand
short-term volatility have an advantage over other investors.
Our advice is based upon well-founded principles and is
consistently applied to our clients.
We endeavour to understand the particular circumstances
of each client and develop our advice accordingly.
Our clients seek the highest after-tax, risk-adjusted rates
In constructing a portfolio, the precepts listed above lead us to the following conclusions:
- Fees and tax costs present a serious hurdle for active stock managers, one that we believe they are unlikely to overcome.
Hence, we pursue index-oriented equity strategies.
- The inclusion of alternative asset classes can improve the risk-adjusted returns of a portfolio. These assets can
include: commodities, real estate and absolute return strategies.
- The reduction of fees and taxes can serve as an enhancement to returns.
- Disciplined adherence to strategic allocation targets can increase investment returns by lowering risk and not
forcing reliance on market timing calls.