TUESDAY, FEBRUARY 01ST, 2022

Investment Committee.

← BLOG - Investment Committee.

Every two months, I chair our internal investment committee meeting with the advisers and technical team to discuss and review our centralised investment proposition for existing and prospective clients.  We review our company philosophy to ensure any strategy we implement continues to meet our non-negotiable requirements for portfolio construction. Those factors being cost, past performance through difficult market cycles, diversification and financial strength.

 

We begin by discussing financial news, recent events, potential future events and how this will affect individual asset classes, those being company shares (equities), fixed interest securities (GILTS, Treasuries, and corporate bonds), Alternative strategies (commodities, currency, property and infrastructure). We also consider the opinions and narratives of multiple blue chip fund managers. A current example of this is how rising inflation and potential interest rate rises, as a result of the Covid pandemic, will affect fixed interest security valuations over the short, medium and long term. We also look at how these events might impact different industry sectors and regions. Using our research software, we review the exposure to each of these asset classes, regions, and industry sectors in our existing portfolios. We make a judgement about whether our existing portfolios need to be adjusted as a result of these discussions.

 

We have a number of different portfolio options for our clients, depending on their attitude to investment risk, investment preferences and term of investment. Each one needs to be carefully analysed to assess whether it continues to meet the original investment objectives and continues to perform as expected by comparing it the industry benchmarks.

 

Whilst reviewing the historic performance is important, our priority is to consider the future and whether a fund is built to not only provide positive returns in good market conditions, but is built to withstand adverse market conditions. So, as well as a performance analysis, we review the allocation to each asset class, each region and each industry sector. This ensures suitable diversification as well as any tactical and active management capabilities the fund has to combat changes in market environment. Finally, we look at the ongoing cost to ensure it remains good value.

 

Our technical team will carry out research prior to the investment committee meeting to provide insight into other options available on the market and any new funds meeting our requirements that could potentially provide an alternative to our existing funds.

 

It is vitally important that existing portfolios continue to meet the objectives we set out to achieve for our clients. If they are not achieving these objectives, we must be clear on the reasons why and make important changes, but only when necessary.  We believe in long term investment strategies and will avoid making regular changes to portfolios as this can prove detrimental to long term returns. We strongly believe in ‘time in the market’, and not ‘timing the market’.

 

Our clients’ futures are our absolute priority so we must ensure we monitor and review our investment strategies regularly and build our portfolios with the future in mind.

 

Rest assured that we always have our clients’ best interests at heart.

 

Nick Evans

Nick Evans Nick is a Director and Financial Planner with 5 years of dedicated experience in the finance sector. Nick's commitment to excellence is evident as a proud member of the Chartered Insurance Institute, and he holds a diploma from the Personal Finance Society (PFS). Nick is passionate about empowering individuals to make informed financial decisions and achieve their goals.

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