Prowess & Profit
Effective investment management can be thought of in different ways. At Principal & Prosper we believe Investment Management is about managing risk and embracing opportunity.
Rollover the blue blocks below to reveal and read in more detail about our investment process:
Financial Planning: At the heart of what we do is to offer a complete financial planning advice service, covering all your needs whether you are an individual, a business or a trust, taking into account your individual objectives and priorities.
Multi-Asset Risk-Managed Portfolios: We manage our model portfolios in a way that aims to control the amount of risk investors are exposed to.
Strategic Asset Allocation (SAA): Our SAA process defines a long term asset allocation framework for our investment portfolios. Using sophisticated modelling tools, we compile asset allocations designed specifically to deliver risk in line with the risk-profiling process used by our financial advisers.
Portfolio Construction: Portfolio construction is both an art and a science. The structure of the portfolio will be primarily driven by our strategic and tactical asset allocation views and will then be shaped further by the investments we select. We look to combine investment managers that employ different approaches – this helps to diversify the portfolio and subsequently, helps to control risk. To do this successfully, a deep understanding of the investments, the managers and the strategies they employ, set against the prevailing investment environment, is needed to strike the right balance between risk and return.
Investment Selection: Our Investment Managers carry out hundreds of investment manager meetings a year, scouring the market for the highest quality investments that they believe will deliver superior risk-adjusted returns for our clients. Investments under review undergo an extensive due-diligence process, in which performance is important but is just one of many factors that are taken into account by our team. Others include investment process, investment capacity, management team experience and incentivisation.
Review: Our model portfolios are reviewed formally by our Investment Committee on a quarterly basis. But for our Investment Team, the monitoring of asset allocation positioning, investment selection and markets is part of the day job and hence is an ongoing process.
Tactical Asset Allocation (TAA): The TAA process takes our Strategic Asset Allocations and then overlays our nearer-term tactical views. For example, we may choose to increase our exposure to markets that have sold off excessively or to reduce exposure to markets that we see as expensive. Our investment managers use a wide range of inputs to formulate their tactical views, including independent macro research, as well as drawing on their own wealth of experience.