Portfolio And Investment Portfolio Design
JPM Investment Group utilise the latest research and investment philosophy when designing a client's portfolios. The firm's investment strategies are built on the following 4 broad principles which formulate the hallmark of our philosophy:
- Identification of economic trends in the local and global market place.
- Identification of natural cycles which have repeated over the past 200 years.
- Identifying assets trading at a fundamental discount and are within the sectors which have natural tail winds which are in line with the economic trends and natural cycles.
- Apply technical overlays to assist with the timing of the placement and exit of investment positions.
When designing our client's investment portfolios we access to a wide range of research material. However unlike other firms, we also conduct our own independent research on individual assets to ensure that we have complete comfort with the investments that are choosen.
The portfolios constructed for our clients are then aligned to match their risk profile, goals and objectives.
Our investment philsophy is conservative by nature. When we allocate capital to a particular asset we want to ensure that our clients are compensated appropriately with the risk they have taken to achieve a higher return. We have no interest investing in speculative companies that do not hold a fundamental basis as they tend not to stand the test of time, nor do we believe in utilising extreme high amounts of leverage. Our view broadly is that high leverage ideas only compensate for inadequate research and asset selection. Additionally, in periods where there is nothing suitable to invest in, we may advise to hold large amounts of cash - especially during periods of high uncertainty or extreme premiums being paid for particular assets.
Over the medium to long term this rigorous investment philosphy has served our clients well and protected them from unnecessary risk.
Similar to Warren Buffett we also hold true the belief that diversification is only appliccable if there is:
- Suitable investments in each asset class.
- The asset classes selected are looking favourable.
We believe that at the time of setting the investments that quite often some sectors may not be appropriate nor justify exposure due to high levels of risk. In addition, we will not purchase assets for clients simply for the sake of "diversification" which might result in paying a premium well above the fundamental values of the asset.
These portfolio and investment practices have served us well and ensure that we can, where appropriate, maximise the opportunities in the market, as well as carefully manage the risk associated with the purchase.
To ensure your investment portfolio is designed to capitalise on the opportunities in the market place, call our team of Financial Planners today on 1300 693 511.