About Us Our Philosophy

Redefining risk

The importance of investor behaviour

When it comes to investing, risk can mean different things to different people. But at the core of it all, the most important risk to consider is the risk of not achieving your goals. It’s not just about market volatility – there are many factors that can throw someone’s investment strategy off course, and often, the biggest risk is ourselves.

That’s why we’ve designed our portfolios to work with human behaviour, not against it. By setting rational risk limits and following a proven risk management framework, we ensure that we never chase returns at the cost of taking on unjustifiable levels of risk. We cut through the market noise and stick to the numbers, not the stories.

Guiding Investment Principles

Returns Matter but Investor Behaviour Matters More

Even the most well-designed investment plan can be derailed by destructive investor behaviour.

Price drives long term returns

Evidence shows that valuation (price) is the only metric that has any meaningful influence on long-term returns.

Asset class risks are driven by their underlying risk factors

There are many inter-connected risks across asset classes, so understanding these drivers of risk is crucial for portfolio construction.

Diversify by underlying risk factor, not asset class

Diversification should be across the various drivers of portfolio risk to construct portfolios that are truly robust during market downturns.

Asset allocation is the most effective tool for managing risk

The vast majority of the variability in portfolio returns comes from portfolio asset allocation, rather than security selection.

Build robust rather than optimal portfolios

Investments forecasts involve uncertainty, so we don’t try to construct an optimal portfolio, we instead construct portfolios that are resilient across different market conditions.

Diversify when it makes sense, not for the sake of it

When potential upside is high and prices are low, concentrate. When potential upside is low and prices are high, diversify.

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