Page 13 - Client Review Report Redacted

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Investment Policy

The investment policy details a core set of principles that guide the development and management
of your investment portfolio.

Principle 1: Preservation of capital portfolio in a downturn and potentially boost
The most fundamental principle of investing is returns in an upturn.
the preservation of capital. Capital is not
invested unless the expected return Principle 6: Currency management
compensates for any risk taken. The portfolios will utilise both managers that
hedge their currency exposures and those that
Principle 2: Diversification do not – this positioning will be dependent on
One of the most effective ways to manage risk market events and our longer-term views.
is through portfolio diversification. This involves
holding a sufficiently broad range of assets, Principle 7: Active investment management
investment management styles and investment During periods of market inefficiency, active
managers to reduce the potential risks resulting fund managers can outperform competitors and
from high exposure to one particular asset or the relevant market index through prudent
investment. investment selection and ongoing monitoring.
The better-quality active managers have
Principle 3: Liquidity demonstrated their ability to outperform index
As financial markets offer the opportunity to buy funds over the long term. We select fund
and sell assets easily (with minimal transaction managers on the basis of their quality and the
costs and risk involved), they provide a high likelihood of achieving superior returns relative
level of liquidity. The funds selected and the to competitors and/or the relevant index over
assets in which model portfolios invest the long term.
predominantly offer daily liquidity, meaning your
funds are readily available with short notice if Principle 8: Portfolio investment
unforeseen events require this to occur. management style
No single investment management style can
Principle 4: Markets produce superior returns in a particular asset
Model portfolios only include assets that are over the long term. This makes it important to
readily available in public markets where there hold a mix of different management styles in a
are liquidity, regulatory and transparency portfolio to take advantage of opportunities as
regulations in place to protect your interests. they arise in the economic cycle.

Principle 5: Strategic versus Dynamic Principle 9: Fees and taxes
Strategic asset allocation (SAA) involves Fees and taxation implications are included in a
allocating assets in a portfolio to get the best portfolio analysis due to the impact high fees
return for a given level of risk. SAA is and poor tax management can have on an
determined based on expected long term asset investors’ returns over the short and long term.
class returns and is guided largely by historical Portfolios are constructed with investments that
data. Dynamic asset allocation (DAA) adds charge competitive fees, with a preference for
value to a portfolio by taking medium term
positions in an asset class that differ from the those that have fee structures aligned to the
SAA position. It is intended that these medium- interests of investors and aim to be tax efficient.
term tilts or deviations will both protect the

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