Investments
Our Investment Philosophy
Investing should not be unnecessarily complex. Our role is to help clients build portfolios that are clear, robust and aligned with their long-term goals.
We believe successful investing comes from combining sensible diversification, careful control of costs and a disciplined long-term approach. Our investment philosophy is therefore built around three core principles: simple, sound and cost-conscious. We apply this philosophy when constructing and overseeing portfolios, ensuring each client’s investments remain aligned with their goals, time horizon and tolerance for risk.
Simple.
Easy to understand and without unnecessary extras
We believe that the simplest investment solutions are often the most effective. Our portfolios primarily use passive funds, which aim to track the performance of a market index rather than trying to outperform it through active stock selection. This approach keeps investment costs low and provides broad diversification across global markets.
Passive funds can help investors diversify their portfolios and offer the possibility of long-term positive returns on a cost-effective basis.
Our asset allocation focuses on the most liquid and efficient asset classes. In these markets, a large body of academic and industry research suggests that many active managers find it difficult to consistently outperform the market after fees and costs.
Active management can still play a role in certain areas of the market, but for many core asset classes we believe that capturing market returns in a simple, low-cost way is often the most reliable long-term approach.
Sound.
Likely to succeed; built on valid reasoning
We believe that an investment is more likely to succeed in achieving our clients’ objectives when it is:
Well diversified
Portfolios should be diversified across individual investments, asset classes, sectors, geographical areas and investment styles in order to find the best risk and reward balance. Proper diversification can maximise return relative to its corresponding measure of risk and as such ensuring a diverse mix of funds is important to us.
Designed to deliver efficient risk-adjusted returns
We seek a strategic asset allocation that is consistent with each client’s attitude to investment risk. Portfolios should be regularly reviewed and re-balanced in order to reduce volatility and improve the potential for consistent investment performance.
Long-term
We see value in reducing uncertainty by investing for the long term, rather than trying to time the markets. It is our belief that a superior record is best built on long-term consistency and discipline rather than attempting to outsmart the markets year-on-year or reacting to short-term noise.
Investments Carry Risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a guide to the future.
Cost-conscious.
Spending no more than is strictly necessary
Investment fees are an important criteria in portfolio construction in order to offer value for money. A central tenet of our investment philosophy is always to look for ways to pass cost efficiencies on to clients in order that they receive the best value for their investments.
Turning our Philosophy into Investment Decisions
A dedicated adviser.
You will work with a single adviser who will keep you informed whenever there is something important to discuss – for example if our view on an investment you hold changes or if we identify opportunities to improve your portfolio. We will also be available to talk through market developments and what they may mean for your investments.
Personalised advice.
We will work with you to understand your financial situation, long-term objectives and attitude to investment risk before recommending a suitable portfolio. All advice we provide is tailored to your individual circumstances.
Investment expertise.
Your portfolio will be designed and overseen by Journey using our investment philosophy and research process. We select the funds used within our portfolios and monitor them on an ongoing basis, reviewing opportunities for change where appropriate to ensure portfolios remain aligned with our clients’ objectives.
Investments Carry Risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a guide to the future.