At Equerry Investment Management, we believe that whilst clients like making investment gains, those same clients dislike making investment losses more. The principle of preserving your capital is important to us as is our overriding aim to achieve (net of all investment charges) attractive investment returns for you.
Two related considerations support our investment approach.
1. Compound interest
Compound interest is more effective when applied to a larger sum rather than a smaller one. The principle of preserving your capital is therefore always important for us.
2. Investment losses are more damaging than they may first appear.
If your portfolio loses 20% of its value, it then needs to grow by 25% in order to restore its original value. Similarly, should the portfolio lose 50% of its value it then needs to grow by 100%. We are alert to this every step of the way and believe that significant losses – even if they are infrequent – significantly reduce long-term compound growth rates. We also believe that large losses of this nature can have a telling psychological as well as monetary impact on investors.
Our portfolios are bespoke to you and offer a diversified range of investments.
We adopt a ‘top down’ approach when making decisions on the allocation of your portfolio amongst the various investment categories. In addition to a number of external sources and tools, our research draws on the global resources of Raymond James Financial. We also apply a ‘bottom up’ approach to help us select the assets we invest in on your behalf.
Past investment performance is not necessarily a guide to future investment performance, of course, but we do believe in the merits and potential of seeking out active investment managers with a strong record of success.
In the event that we believe a collective investment scheme is most appropriate, but there is no record of excellent active management, we will opt for a passively managed collective approach instead.
We track many collective investment schemes and securities on our watch list. From within this list, we focus on the investment opportunities that we feel are the best and select them from our core list.