Our disciplined investment approach

December 11, 2017 - Reena Patel

“An investment in knowledge pays the best interest.”

Benjamin Franklin

Clients’ needs are at the forefront of the Furnley House financial planning service and investment proposition and our mission is to help more people to live the life they want to live.

Our disciplined investment approach has been designed with our clients in mind.  We all have different needs and requirements, so we understand that the risk and reward structure of a portfolio is paramount. We have an investment committee that undertakes research to enable us to shape solutions to meet individual needs and objectives.

Managing your Money

We believe that a conviction-led, long-term approach to investing can deliver the best returns. We encourage realistic expectations and focus on the long-term sustainability of investment solutions.

It is about getting clients to their goal without taking undue investment risk. Our solutions are about us delivering on our customer’s needs and expectations. This strategy does not focus on pure performance or trying to be the top performer in a segment. Rather, it is about trying to deliver a more comfortable customer experience.

Our Investment Committee

Whilst you see your adviser once a year or more to review your investments, we work all year round behind the scenes. Meeting quarterly, our investment committee provide Furnley House with specialist investment input and independent research allowing a strong system of governance behind the portfolios your investments lie within as members of Furnley House are involved in the investment committee too.

Taking the Long View

Our investment committee don’t focus on quarterly/short term performance which could lead to tactical short-term decisions; they take the longer-term view.

Any underperforming funds are scrutinised, and the committee will always present their research and comments on any underperforming funds which will include attribution analysis, comments and outlook from the fund managers directly.

Illustrating just this, during 2016, one particular fund was under review as it was consistently underperforming each quarter.  So, how was it reviewed?  The investment committee maintained a regular dialogue with the fund manager – understanding why the fund was under performing and in what circumstances they would expect the fund to recover.

Because of this knowledge and the regular contact with the fund manager, even though the fund was underperforming, the fund was retained in the portfolios and they supported the conviction of the fund manager.  The fund then went on to become one of the best performers in the portfolios this year.

Whilst recent performance is strong, we still continue to review the fund closely and speak directly with the fund manager.

Another example to illustrate this, was a fund that was, until recently, held within the portfolios as it offered something different to other UK equity funds.

Again, we felt it wasn’t performing as it should, and it was discussed extensively in the 2017 Q1, Q2 and Q3 meetings. The investment committee fulfilled their independent role and maintained an ongoing dialogue with the fund managers, received the attribution analysis explaining why the fund was under performing and they met with the fund manager in person in 2016, later followed up with a teleconference during this summer.  Following this, we concluded we had lost conviction in the fund and made the decision to remove the fund from portfolios.

A Collaborative Approach

We believe expertise is critical to successful investing and draw from a broad spectrum of internal and third-party talent as well as taking on board input from a variety of respected external sources.

This collaborative approach allows investment decisions to be inspected and challenged, with client outcomes and their best interests resolutely at the heart of all investment decisions.

Next Steps

If you would like to learn more about Furnley House, how we do things and the services that we offer, irrespective of whether you are an experienced investor or seeking advice for the first time, please get in touch.

 

The value of investments can fall as well as rise, and you could get back less than you invested. Past performance is not an indicator of future performance.