We believe in long-term investment!
Strategic Asset Allocation
International research has found that the decision regarding which asset classes to opt for is crucial to acceptable long-term investment returns.
Tactical asset allocation
Although strategic asset allocation forms the basis of our investment style, we do expect the underlying asset managers to change their asset allocation from time to time when certain asset classes offer better value at lower risk.
Our investment philosophy is based on the belief that investors can expect historical long-term real rates of return. This means that although an asset class may outperform (or underperform) over the short term, the returns over the long term will revert back to the average. Historically, cash has delivered returns over inflation of +0.5% to 1%; bonds have delivered +3% to 4%; property has delivered +5% to 6% and equities have delivered +7% to 8% over the long term.
Although it cannot be denied that equities produce the best long-term returns, most clients shy away from the volatility that goes with this asset class. There are, however, mix-and-match strategies that can boost clients returns while also reducing risk. We have ways of optimizing these strategies for the benefit of our clients.
Based on qualified assumptions, each client’s real rate of return will depend on the precise and appropriate asset allocation in terms of his/her individual investment plan. This is the return required to achieve the client’s long-term financial objectives and is, once again, client-specific as illustrated by the cash-flow analysis. Our client-specific regular reporting is aligned with this internal target return. We are convinced that one cannot manage what cannot be measured. Therefore our client-specific quarterly reports continuously monitor to what extent the required return as expressed in the financial plan is being achieved. Be aware off short term result .
An investment operation is one which, upon thorough analysis, promises safety of principle and an adequate return. Benjamin Graham
If the client’s objectives are realistic, our investment strategy offers a tailor-made solution.