We are lucky to be able to use the Centralised Investment Proposition (CIP) methology developed by Flying Colours Finance. We believe that this investment proposition can add significant value to an individual’s investment portfolio.
We appreciate that each client is an individual with unique personal financial circumstances and objectives and we will treat them as such.
The CIP involves active monitoring, regular fund selection and automatic re-balancing carried out by some outstanding organisations; the use of which we believe will deliver real benefits to our clients.
Academic research continues to shape investment theory. New investment products become available to investors and markets that were once only available to professional investors. Our investment proposition is therefore not static and will continue to change in ways that we believe to be in the interest of our clients.
The main criteria in the process are:
Please contact us to find our more.
One of the most important views to arise from modern portfolio theory is that investors should avoid concentrated sources of risk by holding a diversified portfolio. There are three primary factors which influence portfolio performance: asset allocation, stock selection and market timing.
We believe that cost is a critical factor in selecting a product or investment fund. We recognise the need to select companies with sufficient financial strength and adequate levels of service, however cost is one of the few known criteria at outset and it has a demonstrable impact on future investment returns. This informs both our asset allocation strategy and fund selection criteria.
Strategic Asset Allocation
One of the most important investment decisions we make for clients is what assets to invest their money in. Depending on their financial goals we will build a corresponding mix of assets that produces the most appropriate level of risk and expected return. We believe that setting the right asset allocation to match a client’s objectives is the most important aspect of portfolio construction.
Discipline and Stability
An asset allocation is set to meet a client’s attitude and capacity for risk and to make it likely the portfolio will meet their objectives. It is important that this portfolio maintains these characteristics throughout the lifetime of the client’s investments. This is best achieved by having stability in asset allocation because reducing trading volumes will reduce trading costs and reduce the opportunity for error.
Tactical Asset Allocation only in certain circumstances
Tactical asset allocation is an active management portfolio strategy that rebalances the percentage of assets held in various classes and sub-classes to take advantage of short, and intermediate term market inefficiencies. It has the goal of raising investment performance above the market average. Tactical asset allocation is used by most active fund managers.
Predominantly Passive investment approach
We believe in most investment areas it is difficult to search for undervalued stocks or to try to predict trends in the market through either fundamental or technical analysis. For this reason, as a default for our client’s, we believe in passive investment.