The world of investments can seem exciting, daunting, fulfilling and risky. It’s a complex arena which requires detailed knowledge of the markets, the returns and any risks.
Whilst some may play the markets and try and predict the returns, we firmly believe in taking a sensible and systematic approach to investing your funds and rely on something called evidence investing. It’s at the heart of what we do.
Evidence investing (also known as evidence-based investing) is a systematic approach to investing money which is based on 50 years of empirical research into the markets and their performance. It advocates and establishes that you will capture the best returns from the market by holding low cost, highly diversified and long term investments. It’s an investment approach based on discipline and diversification rather than prediction and timing.
It also takes into account your attitude to investing and your particular circumstances, so that we can structure your portfolio accordingly. Diversification (across global markets, industry sectors and companies) provides protection against risk, market fluctuations and inflation, and the emphasis is always on keeping costs low. As part of explaining this approach, we have some very easy to understand aids that help illustrate our investment philosophy and research.
Whether consciously or sub consciously, investing is a very emotive area. With many private investors making decisions based on gut instinct or unconsciously held beliefs. We aim to eliminate those unreliable emotions from the investing process and we use psychometric assessments to get a deeper understanding of who you are and your attitude towards investing.
When you work with us, we spend time educating you about the unpredictability of capital market returns and the importance of appropriate asset allocation. In the long run this approach will likely prove more fruitful than paying fees to guess where markets are headed next.
The result is that when we structure your portfolio, you can be confident that it’s going to target what you need it to achieve.
Download our evidence-based investing infographic.