Bespoke Investment Solutions
At Altor we don’t have an in-house investment solution. This means that we can match you as the client with the best solution out there. There are a multitude of choices available these days and so it is helpful to narrow down what is important when investing.
Historically the best return is achieved by investing in equities, provided that your investment time horizon is long enough, and you can handle short-term falls in value. Any other asset class that is used, is there to provide a lower return but to soften the falls.
We use an excellent risk assessment tool from Timeline that assess three things; your attitude to risk/loss, your knowledge and understanding of investments and your capacity for loss. The first two are assessed by a questionnaire but the third is tested by running your future finances through hundreds of historic returns to see if your essential expenditure can be covered, even in the worst of times.
These three combine into a single score which we use as guidance to determine the blend of equities and other assets.
One you have the blend; you need to know the style of investing. Most of the historical data supports the long-held theory that the best way to access market returns is to invest passively. This means finding an investment solution that will buy you the shares and bonds of every company in the world, at extremely low cost and regularly rebalance them. This approach is like having all of the great CEOs of the world, working for you and your family to make you wealthier.
Some clients come to us with an investment manager already in place, which is something that we are happy to work with. We have a lot of clients with an investment or financial services background and some of them believe in active management. In these cases, we will find a suitable active management solution for them. Active management is more expensive than passive management but seeks to either outperform or to better manage losses.
Whether you invest actively or passively, the most important thing you can do to boost your return is to leave the investments alone and not meddle. Timing markets or trying to move into the next hot sector, is the best way to lessen your return.
Global markets are now highly efficient, with millions of participants finding the right price point. To battle against this efficiency is not worth it.
Bespoke investment solutions are available to Altor clients in our Core Service. Single solution portfolios are available to Altor clients in our Core, Discounted and Family Services.
Nothing on this website or its links constitutes a personal recommendation; the information contained is designed to be informative but not to be relied upon as individual circumstances could affect the relevance of this guidance.