We view research as key in identifying investments that provide long term outperformance on a risk adjusted basis.

Our resources in this area are extensive. In terms of qualitative research, we receive economic, market and security based analysis from a substantial number of the largest investment banks (including access to individual sector analysts), as well as significant coverage of the mid and small cap specialist institutional research brokers.

In addition to the extensive qualitative research available to us, we run a range of quantitative based screens using leading data providers to identify investments that may be worth further consideration, as well as identifying existing investments that will need to be reviewed.

Investment Universe

We aim to offer access to the broadest investment universe available within our specialisms. Our investment universe encompasses direct equities and bonds, unit trusts, Open Ended Investment Companies (OEICs), investment trusts and investment companies, Exchange Traded Funds (ETFs) and structured products. However we do not consider Unregulated Collective Investment Schemes (UCIS) to be appropriate for our clients.

Investment Selection

We conduct extensive research and analysis into each investment prior to its inclusion on our core list. We constantly monitor these investments, with macro-economic implications considered daily during investment meetings. We formally review performance of our key recommendations on a weekly basis.

Direct Investments

Quantitative analysis is complemented by qualitative research and our market experience. In terms of key metrics, we review company characteristics such as cashflow and balance sheet analysis, financial characteristics such as PE and PEG ratios, and liquidity of the security, before considering investing. We constantly monitor existing holdings to ensure they continue to meet our criteria. Updates are regularly produced by companies although we also look to meet with the management of investee companies for more in depth discussions about their opportunities and underlying risks.

Collective Based Investments

A quantitative and qualitative approach is also undertaken for collectives, identifying strategies and vehicles that should outperform peers and underlying benchmarks. In terms of key metrics, we review the Fund Management Group, Fund and Manager, together with investment strategy and liquidity of the underlying investments and vehicle, before investing. We would envisage all holdings within portfolios to be readily realisable and daily traded securities.

Our fund research draws on a variety of leading data and research providers in conjunction with our qualitative analysis and investment experience.

In a majority of cases the managers of funds we invest in, and those we are considering investing in, are interviewed to assess how their investment style and process complements our existing range of recommended funds.

In terms of dealing and administration of open-ended funds, the firm uses a leading institutional platform. We always endeavour to buy the most cost effective units for clients to ensure a transparent service. If any rebates are received they are passed on to the client’s account.

Full version