Secondly come tactical moves, where active adjustments can be made to account for near-term opportunities and risks. Just now, with the UK economy under a cloud of uncertainty, perhaps trimming exposure for some time makes sense.
This leads us to another principle – that of active management and its potential to add real value over the long term. Such is our conviction here that we spend most of our time and effort picking the best active fund managers. After all, it’s been proven almost impossible to reliably predict broader asset moves from year to year, but we firmly believe that talented specialist managers can add value within their fields of expertise on a consistent basis.
Interestingly, this brings us full circle. Our clients are people investing for a future outcome and we try never to lose sight of that. At the same time, the underlying managers we entrust our clients’ hard-earned savings to are also people – understanding what makes them tick, how they think and work forms a key element of our investment process. Again, long-termism is important because we want to invest early with managers building what we believe will be a long and impressive track record that benefits our clients.