The volatility of equity markets over the last decade has resulted in many private investors becoming increasingly uncomfortable with the risks inherent in a portfolio predominantly invested in equities.
Investors have witnessed the effect that short-term volatility can have on the long-term returns, and have indicated that they are prepared to accept a slightly lower long-term return on the understanding that they are exposed to less risk of negative short-term returns.
Asset allocation
While many fund managers continue to pore over share prices looking for companies to buy, academic research shows that 90% of portfolio returns can be attributed to asset allocation rather than stock selection. (Ibbotson and Kaplan, 2000)
Our investment focus is therefore on the correct asset allocation of your portfolio across different asset classes. We believe that by active asset allocation it is possible to capture short-term cyclical opportunities to enhance the returns from your portfolio without increasing the risk.
Below is a Citywire interview with David Rosier and Charles MacKinnon, regarding the founding principles of Thurleigh and the importance of "eating your own cooking".