At the outset of a new client relationship, we spend considerable time getting to know our clients as we believe that successful investment management is predicated on a clear understanding of their financial circumstances, income requirements, return aspirations and tolerance of risk.
Above all, our objectives are to achieve absolute returns for our clients and to preserve their capital. It is our belief therefore that the only appropriate benchmark for our clients is the risk-free return available from cash. Accordingly, everything that we do is designed to reduce the frequency and severity of actual loss of capital by actively managing the risk that is being taken.
It remains as true today as it ever was that investment returns can only be achieved by taking some risk and that the higher the desired return, the higher are the risks that must be taken. We cannot overcome this fundamental rule of investment. Accordingly, together with our clients, we agree mutually consistent investment objectives for the portfolio which are articulated in terms both of risk and return. We quantify the likely effects of these decisions by using sophisticated analytical and statistical techniques.