As specialists in global multi asset investing, we focus on making intelligent asset allocation decisions and diversifying properly to manage risk – it’s our “Clear Thinking” put into practice
Why our approach? In short, because it is proven, robust, consistent and transparent.
Each of our investment strategies has a clear target return, and we focus on delivering positive real returns. This objective promotes transparency and focus, for both our clients and us.
We invest from the top down, first identifying an optimal blend of asset classes, then actively managing it over time, anticipating and adjusting to changes in market conditions.
Our work is grounded in analysis of the fundamentals. We are interested in the true underlying value of an investment, not its current popularity.
We focus on making investments capable of delivering good long-term performance, rather than chasing the latest market fad.
Robust risk management is one of several things that set MS Wealth Capital apart.
We use a wide variety of measures to assess risk, emphasising real-world factors that matter most to clients. Our operational due diligence on investments is thorough, leaving no stone unturned. And we use industry-leading risk monitoring and analysis tools to aid clear thinking.
To us, disciplined risk management is essential if we are to be good stewards of wealth and to meet or exceed the targets we set.
Our investment process is disciplined and transparent. Yet we retain the freedom to invest with conviction.
For each of our investment strategies, we begin with a strategic asset allocation. This acts as a reference point for our decision-making.
To build the strategic allocations we analyse past and likely future performance from all major asset classes – equities, commodities, bonds, cash, property, private equity and hedge funds.
In creating a strategic allocation, we seek to achieve an optimal blend of these different assets. This blend is broadly diversified to deliver the objective of the investment strategy. The strategic asset allocation also reflects the amount of risk we are prepared to take in order to achieve the target returns.
Asset allocation involves the distribution of capital to various asset classes (such as stocks and bonds) and geographies. It is based on the principle that the values of different assets react in different ways to changes in economic and market conditions. In setting our asset allocation strategy, our asset allocation committee evaluates investment research to make short-term (tactical) and longer-term (strategic) assessments of prevailing global economic and financial conditions. The committee quantifies its assessments and communicates its strategy through several ‘guidance portfolios’, each pertaining to a certain risk profile and consisting of recommended allocations to various asset classes.
Our investment managers are organised into sector research teams, each of which specialises in an area of the market. This structure allows them to pool their knowledge and experience, and ensures that the managers of client portfolios are at the centre of our research process. It is the responsibility of each sector research team to produce a buy list of recommended investments pertaining to their area of specialism. When combined, these lists form a central buy list consisting of a range of different types of investments. The investment cases of all buy list investments are reviewed regularly.
During the portfolio construction process, our investment managers create personalised portfolios in line with the individual investment mandate provided by the client. They select investments from our multi asset class strategy and ensure that each portfolio abides by our asset allocation committee’s guidance. Following the initial construction phase, each portfolio is constantly monitored and adjusted as necessary.
Our investment committee oversees our investment process, approving all asset allocation. It has also established several risk controls that our investment managers must abide within the construction of client portfolios; these pertain to factors such as portfolio volatility. We have implemented a sophisticated risk management and portfolio monitoring system to ensure that client portfolios are invested in line with client portfolio guidelines and our internal risk controls.
Within the team, individuals have responsibility for both portfolio management and investment research, specialising in a particular asset class, region or investment area.
Our approach to decision making is collegiate. We are a close-knit team taking decisions together, monitoring progress together and sharing responsibility for the results.
Multi Asset Strategies
At MS Wealth Capital, we have chosen to concentrate our expertise on a focused range of investment strategies; Total Return, Income and Ethical.
In our experience, most people’s investment objectives map very closely to one of four broad categories. At MS Wealth Capital, we label these categories Defensive, Cautious, Balanced and Growth. For each, we have an investment strategy that seeks to deliver a return at or above a set target level.
Each strategy has a benchmark target, which is aligned to its risk profile. Over the long-term investment cycle strategies aim to meet or exceed their target.
Our team have the ability to invest across a broad range of global assets, regions and sectors without the restrictions often associated with aligning to a market-based index. These benchmarks are intended to assist us in providing clients with a predictable investment journey - one that is consistent and steady, and seeks to minimise downside risk.
Our global multi asset strategies can be accessed in several ways. The most popular route is through our multi asset funds. These funds are efficient and have several benefits
MS Wealth Capital also offers segregated portfolios (with minimum investment requirements) for those who prefer this structure.