Kicking the tyres of our Investment Portfolios

This week, James has been preparing the Management Information (MI) pack for our quarterly investment committee meeting.

These meetings are an important opportunity for us to take an in depth look at how our clients’ investment portfolios are performing, take stock of new research and developments in financial markets and consider how it all fits in with our core beliefs on the way in which money should be managed.


This quarter, we have invited an external third party professional to get an independent view.  This is crucial to ensure we are challenged on our beliefs and the way we do things but also to keep them honest in terms of ensuring they continue to deliver what our clients need.

We adopt an evidence based approach to investment which concentrates on capturing the power of the markets in a highly efficient manner.  There are some commentators who refer to elements of what we do as ‘passive’ but this is unhelpful industry jargon and in fact could not be further from the truth.

We work continuously to ensure that our clients keep as much of the market return as possible for the risk they take on and our investment committee meeting is an important part of this work.

Our approach is very different to the traditional which is to focus on return.  This is proven to result in unrewarded risks, inefficiency and speculative behaviour often leading to nasty surprises.


You could think of our approach as being more like that of a scientist compared to the crystal ball gazer.  Our investment committee is constantly examining the evidence to focus on the areas where we know our clients will be best rewarded such as reducing cost.  The traditional approach requires consistent and accurate predictions of markets to be successful and there isn’t much evidence of there being anyone out there who has cracked those yet!

Are you bamboozled by investment jargon or confused why your portfolio isn’t delivering what you feel it should?

If you would like to talk to us about how your investments are doing, financial planning, risk or any aspect of our work as personal finance directors, why not get in touch?



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BDB Financial

July 21st, 2015

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