Behavioural Science Powering Advanced Investing

We believe that when someone begins an investment journey, what they are looking for is simple: the maximum return, for the lowest amount of risk.

However, in today’s markets, it is impossible to accurately and consistently predict the market. There will always be winners and losers. Recently, we’ve seen the impact of the EU referendum vote reverberate across the markets, to far flung corners which an unseasoned investor may not expect to feel the impact. In our increasingly-connected world, domestic unrest, supply and demand, trends, speculation and expectation can all shape the financial markets.

So with an increasingly complex and quickly changing environment to navigate, how can investors plan to reach their financial goals?

Diversification

Over the long-term, we believe that diversification can be a way in which to achieve attractive returns, whilst mitigating market volatility. Many fund managers use a multi-asset approach, diversifying investments by asset class, industry and geographic region. However, these funds are all built to follow the investment expertise and philosophy of a single fund manager.

With our True Potential Portfolios, we’re taking this diversification to the next level by moving from single-manager diversification to advanced multi-manager diversification.

Behavioural science

By working with eight leading fund managers, we build Portfolios that are diversified by asset class, industry, geographic region and investment strategy. We know that each strategy behaves differently in different types of markets and in today’s volatile world; the power to quickly rebalance from one strategy to another as markets change, is invaluable.

By drawing on the varied expertise of UBS Asset Management, Goldman Sachs, Allianz, Columbia Threadneedle, Schroders, SEI, Close Brothers and 7IM to create our True Potential Portfolios, we’re using behavioural science to create an advanced investment proposition.

With these worldwide partners, we have access to over 5,000 investments professionals on the ground in over 200 locations. This enables us to gather information on a local and global scale, analyse it with our partners and create our own strategy based on the strength of their joint experience, expertise and outlook.

By drawing on the combined strategic expertise of our unique blend of eight expert fund managers, our Investment Team can:

• discover core themes for the short, medium and long-term investment future;
• manage volatility; and
• find opportunities for growth that others can’t replicate.

We use this information, available to us at all times, to shift and rebalance the Portfolios to put investors in what we believe is the strongest position for the future.

All of this sits within a robust and independently-monitored overriding client-first strategy that ensures we remain true to our investment objectives. In one multi-manager Portfolio, clients have access to different strategies from world leading experts, working together, to create better results.

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