Our Investment Process is carefully designed to maximise your long term investment returns, based upon the level of risk you are willing and able to accept
Our approach to investing is based on the Nobel Prize winning theory of Harry Markowitz, known as Modern Portfolio Theory (MPT). MPT is a mathematically-based approach to manage and mitigate risk over the long term that seeks to either maximise the expected returns from an investment portfolio for any given level of risk, or minimise risk for any given level of expected return.
MPT scientifically utilises the concept of diversification (or ‘not putting all your eggs in one basket’) with the aim of using asset allocation to carefully construct a portfolio of investments that is spread across a wide variety of different industries, economic sectors, geographical areas and investment types. The aim is to achieve a lower overall risk than any other combination of investments with the same expected level of return. This is possible because different asset prices often change in opposite directions, meaning that if some investments lose money, at the same time others will make money. Historically, this strategy has proven to be effective in providing long term investment gains.
The purpose of our Investment Process is to generate superior long term investment returns, based on your attitude and tolerance to investment risks. The more risk your portfolio is exposed to the greater the potential for long term returns, but equally, the greater the chance of short term losses. It is important not to take unnecessary risks and it is essential for us to thoroughly
assess the risks you are willing and able to accept, whilst helping you to maintain sufficient readily accessible funds for use in emergencies. However, historically over the long term, MPT has demonstrated that it is normally possible to protect yourself against investment risk by skilfully blending a portfolio that is spread across a diverse range of asset classes.
Our Investment Process has been designed to promote consistent, robust, systematic and cogent outcomes for our clients.
We use an extensive range of leading financial research technology to continuously screen the whole of the marketplace. Utilising a strict set of internal criteria, we rate all products before using comprehensive quantitative and due diligence information in conjunction with qualitative analysis to identify a set of investment products and funds in each sector that we believe should achieve outstanding long term returns.
Our clients benefit from the reassurance that our recommendations for new and existing investment portfolios follow this exacting methodology at both the initial advice stage and at subsequent ongoing reviews.
Our Investment Committee is the cornerstone of our Investment Process and meets on a quarterly basis to scrutinise, oversee and evaluate the results of our analytic research and consider any changes to the panel of selected products and funds. Importantly, when market conditions become stressed, the Investment Committee is empowered to use its judgement to make strategic macroeconomic adjustments to our asset allocation models over the short term to help defend our clients’ assets.
The Committee reflects a wide range of relevant professional and investment management experience and benefits from an independent chairman who oversees a rigorous governance process.
Throgmorton Private Capital is regulated and authorised by the Financial Conduct Authority (FCA), which means that you are protected under the Financial Services Compensation Scheme (FSCS) with respect to any recommendations that we make.
The FSCS is funded by the financial services industry and is free to consumers. It applies to a wide range of UK financial products and services, such as investments, pensions, financial advice, insurance and mortgages and in general it covers individuals and small companies. Different compensation limits apply to each product or service.
All investment involves risk and it is important that you understand the value of investments and any income derived from them may go down as well as up and you might not get back the full amount you invested. Please contact us if you have any doubt about whether an investment is suitable for you.