B L Andrew
Chairman of Trustees
The strategic asset allocation decision is important because the mix of asset classes helps diversify risk without necessarily sacrificing returns. Research indicates that most investor long term performance is determined by the mix of asset classes rather than market timing or stock selection.
Our models and investment management process enables your individual manager to monitor and adjust your portfolio to match your strategic weightings. These weightings help you meet your objectives in a conservative manner.
We do make tactical adjustments, in consultation with a leading independent economist, dependent on the changing economic and market conditions.
We are equity orientated in the construction of portfolios because the real benefits of diversified equity ownership participation over time are well documented and likely to continue. Equity returns are substantial relative to other asset classes over time, but the risk is volatility. Therefore, for those who cannot stomach volatility or for whom the investment time horizon is short, equity exposure needs to be diluted with other assets. The principal purpose of the asset class allocation is to capture this diversification.
