INVESTMENT APPROACH

We follow an active, multi-asset approach to investing. We believe that over the long-term this provides better capital protection and risk-adjusted returns. Our approach to diversification means we are unhindered from the more traditional approach to simply blend equities and bonds.

Our investment philosophy is guided by the following three principles:

It is fundamental to fully understand clients’ needs and expectations

Asset allocation is at the core of the investment process

Active investment management - buy and hold may not be the optimal strategy for a client

We are active investment managers – this does not mean we constantly make changes – it means we are always monitoring portfolios and will make adjustments and change when we believe the opportunity to protect or enhance client returns becomes available. This creates greater investment diversification and superior client outcomes.

IPS has incorporated institutional-strength economic, investment and fund research into its investment process by partnering with some of the world’s most experienced investment research houses. Deep understanding of the fundamental and technical aspects of each investment opportunity means that IPS is less likely to be distracted by short term headlines and more able to focus on the longer-term risks and opportunities for client portfolios.

ASSET ALLOCATION

Our asset allocation process covers nine asset classes, our opportunity set. These are categorised into three key investment styles; growth, protection and real assets. We use extensive market research from both our in-house team and some of the world’s leading economic research houses to generate investment ideas which are then debated by our Investment Committee.

PORTFOLIO CONSTRUCTION

When constructing a portfolio we must first determine the client’s upper and lower risk limits. These limits determine the types of assets that will be selected for the portfolio. The assets are extensively researched and monitored and a comprehensive due diligence process carried out. Our risk management system, IPS ART, is then used to carry out stress tests on the portfolio and monitor its compliance with its risk profile.