Page 7 - 2020 PSK Portfolio - Client Name

Our investment process

PSK Portfolio Solutions focus on the following four key areas:

1. transparency; you see what you own.
2. flexibility around asset allocation and investment selection.
3. professional management through full resourcing, as the portfolios are managed
by a dedicated investment professional.
4. security; no unnecessary risks are taken to achieve the goals.

The investment process is guided by a clear investment policy and selection process, that
are outlined below.

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

The most fundamental principle of investing is the preservation of capital. Capital is not
invested unless the expected return compensates for any risk taken.

Principle 2: Diversification

One of the most effective ways to manage risk is through portfolio diversification. This
involves holding a sufficiently broad range of assets, investment management styles and
investment managers to reduce the potential risks resulting from high exposure to one
particular asset or investment.

Principle 3: Liquidity
As financial markets offer the opportunity to buy and sell assets easily (with minimal
transaction costs and risk involved), they provide a high level of liquidity. The funds selected
and the assets in which model portfolios invest predominantly offer daily liquidity, meaning
your funds are readily available with short notice if unforeseen events require this to occur.
Principle 4: Markets

Model portfolios only include assets that are readily available in public markets where there
are liquidity, regulatory and transparency regulations in place to protect your interests.

Principle 5: Active investment management

During periods of market inefficiency, active fund managers can outperform competitors and
the relevant market index through prudent investment selection and ongoing monitoring. The
better quality active managers have demonstrated their ability to outperform index funds
over the long term. We select fund managers on the basis of their quality and the likelihood
of achieving superior returns relative to competitors and/or the relevant index over the long
term.