Stewardship: At the heart of our investment approach is the concept of stewardship.
We believe our job is to allocate our clients’ capital to good quality companies with sound growth prospects and strong management teams, ensuring we pay sensible prices for these investments. Each investment is a decision to purchase, on behalf of our clients, not a piece of paper or an electronic ticker, but part of a real business with all the rights and responsibilities that go with this. We take these rights and responsibilities seriously. We also believe the way we behave as investment professionals and the role we play in the broader industry are important in this regard.
- Risk: We define risk as the risk of losing our clients’ money, rather than in terms of deviation from any benchmark index. We focus as much on the potential downside of each investment decision as on the anticipated upside.
- Long-term: We are long-term investors and strive to make investment decisions with a five-year time horizon. We are incentivized accordingly.
- Bottom-up: We invest in companies, not sectors or countries. Our starting point is always to find good quality companies. Only then do we consider the political and economic environment in which they operate.
- Quality: We emphasize the importance of the quality of the management and spend a great deal of time focusing on areas such as management integrity, corporate governance and the historic ability to develop and execute successful long-term strategies. Quality of the business franchise and the financials are also critical.
- Growth: Our preference is to invest in companies able to generate a steady, predictable growth in cashflows over the long-term, recognizing that companies growing too fast usually come unstuck.
- Valuation: We strive to ensure we pay sensible prices for our investments. We believe every company of sufficient quality has a fair value and that there is no single catch-all valuation methodology to assess this fair value.
The value of investments and any income from them may go down as well as up. Investors may get back less than the original amount invested and past performance information is not a guide to future performance.