Our investment strategy
We’ll start by distributing between each of the main types of investments, including:
- Equities (shares in companies based anywhere in the world)
- Bonds (short, medium and long term debt)
- Commercial property (offices, shops, warehouses etc)
We set a level for each of these types of investment which varies depending on the risk profile selected. Typically, there will be a lower allocation to Equities for the lower risk portfolios.
We regularly adjust the amount allocated to each asset depending on our views on the various markets. Periods when the overall trend in stock markets is upwards are called Bull Markets, and the opposite Bear markets. It would be very helpful if we could predict accurately when those changes are going to occur, but markets don’t work like that. They consistently reflect the views of all those participating and we believe that it is nigh on impossible to predict with any consistency the timing of changes in direction.
However, we do seek to have an opinion on whether the value of an asset is cheap or expensive: this is at the core of our investment research analysis. History shows that if you buy assets when they are cheap and wait long enough you will earn excellent returns.