Effective investment management can be thought of in different ways. At Principal & Prosper we believe Investment Management is about managing risk and embracing opportunity.
Our investment philosophy is the foundation of our investment process and drives our decision-making and can be summarised by five principles:
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Active management – we believe that the active pursuit of value accretive investment opportunities, based on a rigorous investment process, will deliver a superior investment outcome for clients over the longer term.
Diversification – we believe adopting a multi-asset, global and unconstrained approach, provides a broad opportunity set from which to select investments. Combining assets whose returns are uncorrelated, helps to reduce and manage portfolio risk.
Long term - we believe attempting to time short-term market movements is futile, and a long-term approach is essential to realise real investment value.
High conviction – we believe adopting a concentrated approach to investing and placing confidence and capital in our best investment ideas, will deliver a superior investment outcome for clients over the long term.
Risk management – we believe investment performance should be evaluated on a risk-adjusted basis. Risk management lies at the heart of what we do and we view ourselves as risk managers first and foremost. We understand that allowing risk to drift in a portfolio can result in unexpected consequences, hence, we ensure that the risk in the portfolios we manage remain suitable for our clients at all times.