Investing not speculating

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, with our goal being 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 are able to identify the return that they require and then select the optimum portfolio to achieve this, subject to this being within the investor's risk tolerance.

Understanding these expectations, and using portfolios that have a proven history of meeting target returns, puts our clients at an immediate advantage... increasing their 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 Stockmarkets. 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 with is historically minimal and totally under-estimate the long-term risk of not holding them – which is historically fatal.

3

Be a Long-Term Investor

One of the facts about investing is that having a long-term horizon is a powerful advantage given the impact of compound returns and the risk reduction factors over time. You want your horizon to be as long as possible because as an investor, time is your biggest ally.
4

Retain a Healthy Cash Reserve

A healthy cash reserve enables investors to reap the rewards of long-term investing and acts as a anxiety management device, helping investors to avoid the negative impact of distressed sales, selling when the Stockmarkets have temporarily fallen.
5

Track, Don’t Pick

There is no magic wand in the field of investing, yet 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, anticipating market movements and selecting ‘the next top-performing stocks’, which enables them to deliver outperformance. The overwhelming evidence, and study after study demonstrates that this is certainly not the case and indeed it is a futile and costly exercise.

Therefore, investors should avoid active managers and adopt an evidence based diverse index strategy.

6

Keep Emotion in Check

Investors are often their own worst enemy when it comes to investing, panic selling when markets are low, and buying when they are high. For investors, it is time in the market not timing the market that counts.

This way of investing works. Significant research proves it.

We’ve got a track record to back it up too. 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.