Our Investment process

We have a well-defined investment process, which is fundamental to the service we provide. This process creates a strong yet flexible framework for our investment professionals to work together, sharing ideas and challenging each other’s views. It is constantly evolving and we continue to invest in the resources required to ensure it remains robust.

Investment managers participate in our investment process, from company visits and internal discussions to analysing external broker research and assessing investment themes. The process informs their decisions, but our clients’ individual requirements remain paramount.

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Understanding client objectives

  
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  • Comprehensive understanding of our clients’ financial, ethical and sustainability objectives 
  • Ongoing relationship management with a dedicated investment manager

Asset allocation

  
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  • Working with industry experts and thought leaders to understand how the world is currently positioned and how the outlook may impact our investment decisions
  • Grouping assets according to how they behave rather than what they are called
  • Regular reviewing to ensure allocations remain relevant

Investment selection

  
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  • Leveraging the best of internal and external research to identify opportunities through our thematic research approach
  • Meeting company management to go beyond the financials to really understand company values and how these align to our clients’ objectives

Portfolio construction and ongoing monitoring

  
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  • Constructing an investment portfolio for each client based on a holistic assessment of their financial, ethical and sustainability goals
  • Using ongoing robust risk management practices that aim to protect client portfolios during market downturns
  • Adhering to our sustainability goals and net zero
    ambitions

Active ownership

  
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  • Engaging on thematic and company-specific issues
  • Collaborating with Non-Governmental Organisations (NGOs) and other members of the responsible investment community to improve our reach

Asset allocation

Your portfolio will usually be based on our multi-asset approach to investing, which provides us with the flexibility to meet your individual needs over the long term. The starting point for designing your portfolio is to determine the right combination of assets for your investment targets and appetite for risk.

Our asset allocation framework is forward looking. It is dynamic and not based solely on backward-looking statistics. In order to construct portfolios effectively and manage risk, we divide assets into three building blocks, which play complementary roles:

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Liquidity

Assets that can be sold easily, have low credit risk but may carry interest rate and currency risk.

  • cash
  • government bonds: conventional, index linked, UK and overseas
  • high-quality investment grade

Equity-type risk

Equities and all assets highly correlated with equities.

  • corporate bonds: investment grade, high yield
  • emerging market debt
  • equities: UK, US/Europe/Japan/Asia/emerging markets, private equity
  • property equities: UK and overseas
  • commodities sensitive to the economic cycle, i.e. industrial metals/energy

Diversifiers

Assets with diversification potential demonstrated by low correlation to equities.

  • renewable energy and infrastructure funds 
  • bricks and mortar property funds and social housing
  • liquid alternatives
  • long-short ESG equity funds
  • alternative assets
  • sustainable agriculture and impact first investments

     

Corporate governance

We prefer to invest in companies with high standards of corporate governance as they prioritise the interests of shareholders and other stakeholders rather than those of management. We monitor the actions, policies and decisions of the boards of companies we invest in and participate in voting at shareholder meetings. This helps to ensure that your interests as a shareholder are protected.
 

Robust oversight

While our investment managers enjoy flexibility and discretion to deliver our service to you, it is important to have a formal oversight framework to support the investment process. Our investment executive committee is responsible for this.

It makes sure we are managing all portfolios to the same high standards while being able to adapt to changing regulatory requirements and market conditions. It promotes best practice and oversees all aspects of the process from portfolio construction and investment selection to implementation.

This framework, supported by risk management systems, due diligence procedures and regular reviews, makes sure your portfolio remains in line with your investment objectives.