How we invest our clients' (and our own) money
Updated: 12 hours ago
Introduction
Potential clients often ask us how we would invest their money and, perhaps as importantly, why we would invest that way.
How we invest
Our in-house models have been established based on the following investment beliefs and principles:
Asset allocation is by far the most important factor in determining returns.
Costs matter.
Diversification, both in terms of asset class and geography, is important. Our portfolios do not have a “home bias”.
Markets are broadly efficient, and beating the market consistently is difficult.
Risk and return are inextricably linked.
Alternative assets (commodities, Private Equity, etc.) add little in the way of risk-adjusted returns to a portfolio.
Periodic rebalancing is necessary to control any deviation of portfolio risk away from the agreed asset allocation.
Assets must give acceptable risk vs. return in all stages of the market cycle, which may require excluding certain asset types.
Increasing exposure slightly to certain stocks (emerging markets, small cap-value shares) can reduce the risk of being exposed to stock market “bubbles”.
This sounds simple, and this is deliberate. When it comes to investing, we believe simplicity is often better to deliver good client outcomes. We happen to believe our portfolios are world-class, built using many decades of historical data and evidence, and we are so confident it's how we invest our own money.
Conclusion
Investing is important. Without sufficient returns from an investment "engine", the retirement plans that we build for our clients are unlikely to be successful. However, investing is just a part of the retirement planning service that we at Pyrford Financial Planning offer our clients.
Want to find out more?
If you want to learn more about our retirement planning process, please schedule a free, no-obligation call.
About us
The team at Pyrford Financial Planning are highly qualified Independent Financial Advisers based in Weybridge, Surrey. We specialise in retirement planning and provide financial advice on pensions, investments, and inheritance tax.
Our office telephone number is 01932 645150.
Our office address is No 5, The Heights, Weybridge KT13 0NY.
Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
Although best efforts are made to ensure all information is accurate, you should not rely on this blog for your personal situation or planning.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.