Portfoliosense

Portfoliosense® is a dependable, cost-effective investment strategy born out of intellectually robust scientific research into how capital markets work, with all decisions based on Nobel Prize-winning academic theory and strong empirical evidence.

Decades of data guide the way. Our goal is to deliver the performance of capital markets and, where available, improve on these returns through state-of-the-art portfolio design.

Portfoliosense® follows six rules of sensible investing:

1

Invest on Purpose

By clearly understanding the investor's objectives, we can identify the return that they require. We can then select the optimum portfolio to achieve this, subject to this being within the investor's risk tolerance.

Understanding these expectations, then using portfolios that have a proven history of meeting target returns, increases our clients’ chances of a successful investment outcome.

2

Risk & Return are Related

Historical evidence has demonstrated that there is a higher return known as ‘equity premium’ for long-term investors who invest in the stock markets. There is no such thing as a high-return, low-risk investment. If you want high returns, then you need to accept higher risks.

Most investors wildly overestimate the long-term (over 20 years) risk of holding equities, which is historically minimal. Simultaneously, most underestimate the long-term risk of not holding them, which is historically fatal.

3

Be a Long-Term Investor

Having a long-term horizon is a powerful advantage given the impact of compound returns and risk reduction factors over time.

You want your horizon to be as long as possible. As an investor, time is your greatest ally.

4

Retain a Healthy Cash Reserve

A healthy cash reserve acts as an anxiety management device, enabling investors to reap the rewards of long-term investing.

Having a significant cash reserve will help you to avoid the negative impact of distressed sales, dissuading you from selling when the stock markets have temporarily fallen.

5

Track, Don’t Pick

There is no magic wand in the field of investing. Many investors still believe (perhaps due to the noise that emanates from The City and the media) that there are active managers who can predict the future, anticipate market movements and select the next top-performing stocks.

The overwhelming evidence demonstrates that this is certainly not the case; instead, it is a futile and costly exercise. Investors should therefore avoid active managers and adopt an evidence-based, diverse index strategy.

6

Keep Emotion in Check

Investors are often their own worst enemy, panic selling when markets are low and buying when they are high.

For investors, time in the market rather than timing the market is what counts.

This way of investing works. Significant research proves it and we’ve got a track record to back it up. To find out how we achieve this, get in touch.

General Investment Risk Warnings

Please remember the value of your investments and any income from them can go down as well as up and you may get back less than the amount you originally invested. All investments carry an element of risk which may differ significantly.

If you are unsure as to the suitability of any particular investment or product, you should seek professional financial advice. Tax rules may change in the future and taxation will depend on your personal circumstances. Charges may be subject to change in the future.

Specific Portfoliosense® Risk Warnings

For each of the portfolios we recommend we are able to demonstrate, using back-tested simulated data, the historic returns, the anticipated future returns (allowing for inflation) and the historic downsides (including the worst-case scenario that would have been experienced had you been invested throughout the data period), over a variety of time periods.

General Legislative Risk Warnings

This is based on our current interpretation of legislation and various industry comments. It is a broad summary and cannot cover every nuance. You should not take, or refrain from taking any action based on this information. Tax treatment can change and depends on your circumstances. This information does not constitute advice and is purely for information purposes.

The views noted may differ significantly from the final version of the legislation.