Our investment process is designed to contain risk and volatility to acceptable levels. We ensure that your portfolio is managed within the risk tolerance agreed with you at the outset, and reviewed on a regular basis or if your circumstances change.

We have extensive experience and investment in research and analysis, with skilled staff, software and systems dedicated to this process.

We use unit trusts extensively. This is in contrast to individual share holdings, offering wide diversification and a reduction in overall risk in our portfolios, adopting quantitative and qualitative measures in our fund selection process, taking into account the quality and long-term track record of each individual fund manager.


We achieve our returns through the combination of two distinct processes.

  1. Varying the allocation of portfolio across different asset classes (typically bonds, equity, property and cash) and different regions (e.g. USA, Europe, Japan etc.) as the prevailing global economic and political climate changes. The value thus added to the portfolio is known as the tactical allocation effect. Your investments are not shoehorned into pre-defined asset allocation weightings - they depend on your individual risk profile and the economic climate at the time of your investment.
  2. We further enhance returns through the selection of specialist managers within each investment category. This is in contrast to the commonly adopted approach of selecting managers with ‘broad’ mandates. Specialisation in today’s competitive market extends beyond asset class, and even beyond region. It can be beneficial to use a number of specialists within a segment of the portfolio. These might include, for example, a large cap ‘value’ specialist, a large cap ‘growth’ specialist, and small cap specialist.


Once managers have been included in the portfolio, formal manager monitoring begins with performance continuously scrutinised, as compared to his or her peers and chosen strategy. In addition, we review the fit between the existing market environment and the manager’s strategy to determine what events may affect the success of the investment strategy.

We also maintain a watch on managers not currently included in order to detect emerging talent and ensure that alternatives to existing managers are available.


Our manager selection process is based on the concept of risk control and constitutes three different phases:

1. Quantitative Screening

Selection begins with scanning of performance data. We have an extensive database containing performance and other data covering more than 10,000 unit trusts or funds.

2. Extended Quantitative Analysis

The performance characteristics of each fund are investigated in depth. Factors such as correlation, alpha, beta, draw down, performance in Bull/ Bear markets are reviewed. This work provides further insight into the performance drivers of the fund manager, including consistency and performance in difficult markets.

3. Qualitative Analysis

Here we examine the following:

  • Length of tenure of fund manager. How much of the recent past performance of the fund can be attributed to the fund manager in situ?
  • Consistency of performance.
  • Previous experience and track record of the fund manager in running other similar portfolios, strengths and weaknesses.
  • Size and financial standing of the fund group. Assets under management and profitability will be a factor in considering the group’s ability to continue to attract quality fund managers and analysts.
  • Fund size i.e are there a reasonable level of assets under management?
  • Qualitative ratings of the fund.