Investment Approach
1. Advisory Services
- Strategic asset allocation
- Advisory service for manager selection
- Consolidated reporting across multiple investment providers
- Screening of investment opportunities
Multi-Asset Class Programme
- Multi-asset investment mandate
- Investment across liquid and illiquid asset classes
- Mix of funds, ETFs and coinvestments
- Expected 6-8% IRR
Alternatives Programme
- Illiquid, long-term investments
- Specialist sectors beyond traditional alternatives including life settlements, reinsurance and royalties
- Expected 10-15% IRR
Ancillary Services
- Access to a network of families in UK, US, Europe and South Africa
- Private equity deal flow
- Education and inter-generational planning
- Referral to tax and legal advisers
- Philanthropy advice / participation
Investment Philosophy
Long-term investors out-perform short-term investors
A long time horizon allows an investor to take advantage of market dislocations.
Volatility can be your friend
Having a high and static risk exposure will likely lead to the highest returns over long periods of time. Investors should worry about permanent loss of capital not mark-to-market adjustments.
Diversification
Multi-asset class portfolios are critical to ensuring true diversification. Picking which sub asset class will out-perform in any given year is very difficult.
Simplicity is preferable
The investment industry thrives on complexity. However, in the main, investing should be simple, transparent and easily understandable.
Cost control
Fees are certain and compounding and must be carefully managed.
No market timing
Implement and stick to a pre-agreed long-term plan. Time out of the market can be very costly.
Scepticism of active managers
Most underperform net of costs, particularly in highly efficient asset classes, but we do believe a small number still justify their existence.
Asset Classes
We think about the underlying risk factors (or “betas”) that drive each individual return stream. We are agnostic regarding implementation and use a mix of single stocks, ETFs, mutual funds, and private investment funds to express our views. We also give our clients exposure to our own proprietary deals.
