Investment principles

We believe that to invest successfully requires a properly constructed, logical and rigorous investment philosophy.

Our philosophy adopts Modern Portfolio Theory, which is based on the following:

      -  Markets are efficient and investors are rational;

      -  Risk and return are related;

      -  Diversification is imperative; and

      -  Portfolio structure determines performance.

This is supported by an overwhelming body of academic evidence and governs how we construct client portfolios.

A successful investment experience requires you to be an "investor" rather than a "speculator".  Building long-term wealth doesn't have to depend on individual guesswork or trying to pick stocks. It is about building a diversified portfolio based on risks that carry a reliable reward.


dices-on-stocks-1529569-639x425Speculators usually have a short-term horizon and goals that are driven by achieving the highest possible return.  Single stock selection and market timing often occurs, and although they may be successful some of the time, this success is mostly just luck rather than skill.

Research shows that  long term, this approach will not deliver a consistent and reliable return.


Calculator and pen indicating work/studyInvestors understand the components and structures present in financial markets and the way they interact with each other.  

Genuine investors adopt a long-term strategic asset allocation and avoid predictions of future events and market timing.  They are mindful of costs and taxes, and diversifying as widely as possible is key.