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Our Investment Process

"I want consistent, above-average returns, but need to know that no
unnecessary risks will be taken with my money."

Principal takes a disciplined, conservative approach to investment, designed to maximise investment performance whilst minimising risk. We believe in investment basics – not in following the latest fad or fashion.

Your investment manager will begin by sitting down with you (and your financial adviser if you have one) to work out what you want to achieve from your investments, and what degree of risk you are willing to tolerate, before constructing a portfolio to suit your objectives.

Once we have a clear idea of your requirements, the first – and most important – step in constructing your portfolio is to decide on the overall asset allocation. We consider a wide range of asset types, before deciding which are the most appropriate for your particular circumstances. These may include individual UK equities or equity-based funds; overseas equity funds; property funds; fixed interest investments; hedge funds and other specialist investment trusts.

We use our own sophisticated asset modelling system to help us establish the broad, long term (or “strategic”) mix of assets to best meet your requirements. Once these broad asset allocation ranges have been agreed, the precise split of assets will vary within these parameters on a “tactical” basis, depending on our changing views of the market.

Risk is further reduced by holding a broad range of stocks or funds, thereby avoiding over-reliance on any one particular company, fund manager or sector of the market.

Our investment managers have access to extensive research and technical resources. They form their views based on research carried out by the investment team, as well as information supplied to us by a wide range of stockbrokers and other investment institutions. We use a variety of sophisticated tools and techniques to support our investment decisions, which are described in more detail in our leaflet, “Constructing Your Portfolio”.

We have a track record of consistent, above-average investment performance, across a range of different investment strategies, and are happy to provide performance data on request.

"I am impressed by your
investment strategy and
processes ."

Top 10 accountancy firm

"Your institutional
approach and well
diversified portfolios
are a big strength."

IFA arm of solicitors

"Thank you for all your
invaluable help
and advice."

Client