OUR INVESTMENT PHILOSOPHY
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 over the more traditional mix of long-only equities and bonds. Our investment philosophy is guided by the following three principles:
- Asset allocation is at the core of the investment process
- Buy and hold may not be the optimal strategy for a client
- It is important to fully understand clients’ needs and expectations
IPS has incorporated institutional strength economic, investment and fund research into its investment process by partnering with some of the world’s strongest and most experienced investment consultants. For fund research, IPS has partnered with Mercer Consulting to help broaden its access to fund opportunities, particularly in the more complex alternative and absolute return sectors. Mercer helps IPS focus on the areas that add most value to clients while still having a broad market reach.
For investment research, IPS uses BCA and Ned Davis to help evaluate the relative attractiveness of global investment opportunities. 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.
Our asset allocation process covers twelve asset classes. These are categorised into four key investment styles; growth, absolute return, income and protection. We use extensive market research from both our in-house team and some of the world’s leading economic consultancies to generate investment ideas which are then debated by our Investment Committee.
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.