Investment Process

Applied investment intelligence

We aim to build Stay Rich Plus portfolios. This means that our portfolios have capital preservation as a priority and they should demonstrate steady returns with managed volatility. We achieve this through thoughtful asset allocation and careful manager selection. We also seek to identify the most cost effective way to access each asset class. In some asset classes this will be through simple and inexpensive passive instruments and in others this will be through specialist managers who demonstrate a particular expertise or exploit a particular market mispricing.

Asset allocation

Our asset allocation models draw on proprietary internal research which, rather than relying purely on historic returns data, also generates forward-looking return expectations. Our expertise in quantitative analysis, combined with detailed macroeconomic research, allows us to generate some very sophisticated asset allocations. We also use a proprietary optimisation technique to allow us to build robustness into the asset allocations we have developed.

Manager selection

Our goal is to have the best managers on our platform, ready to deploy when the asset allocation signal indicates that the time is right. This means that our Origination team, who are tasked with identifying fund opportunities, are mandated to undertake a global search for exceptional investment opportunities across all asset classes and to carry out lengthy and detailed due diligence on them without having to consider current pressures or sales needs. This liberates them to make rational, long term decisions and to build long term relationships with the best funds which we can then deploy in client portfolios at the correct moment in the cycle. Our due diligence process is rigorous, combining exceptional quantitative analysis with qualitative judgement born of experience.

Portfolio analytics

We have built our industry-leading reporting and analytics function by investing heavily in institutional-quality performance reporting systems and in a highly skilled team which allows us to undertake very sophisticated analysis of portfolios and also to provide our clients with exceptional reporting services.