Our investment portfolios are managed by our sister company, Saltus Asset Management.
Saltus was founded in 2004 to rethink some of the investing norms of the time resulting in these principles:
- To bring investment management services to private clients that were then only available to very wealthy families and institutions such as universities
- To work within pre-determined risk limits so that more clients’ money can be returned over time than they originally invested, whatever the market conditions
- To invest globally, across many assets classes, unconstrained by industry benchmarks. And as importantly, to choose not to invest in an asset class or investment strategy, if analysis demonstrates there is no merit
- To search the world to find what they believe to be the best way to access each investment opportunity
- To use plain English
We begin by defining the mandate, and crucially assessing how much risk it is appropriate to take for each client. This ensures that the investment journey is appropriate for each client and there are no unpleasant surprises.
Asset allocation decisions are made by the Saltus Asset Allocation Committee who meet every 6 weeks. They consider several key inputs including:
- Current asset class valuations
- Fundamental analysis
- Technical analysis
- Knowledge and experience of the committee
Once the best asset allocation has been decided for each client, the investment committee is responsible for allocating capital to third party managers within each asset class. They use qualitative and quantitative analysis to identify skillful managers who consistently produce above average performance. If these managers cannot be identified, then a passive investment will be used in its place.
The Investment Committee monitor portfolios on a daily basis to ensure they stay within their risk limits. If the expected volatility rises towards the top of an acceptable range, then action will be taken to reduce the risk in that portfolio. Volatility is measured over multiple time periods to ensure any anomalies are found.
There is a separate Risk Committee independent of the investment team who provide oversight and have overall responsibility for risk management.