How we manage money at Evelyn Partners

Our focus is on preserving and growing your wealth to give you financial security now and in the future. In an investment world that is sometimes unpredictable, often irrational and all too often short term in its outlook, we do this by focusing on a small number of guiding principles:

We take considered risks

Eliminating risk altogether is neither possible nor desirable. Our focus is on taking the right risks to avoid permanent loss of capital. Wealth preservation is a key consideration, which means we review and monitor a range of high-quality investments that are resilient through a variety of economic cycles and market conditions. This enables us to tailor the risk and reward characteristics of your portfolio to your needs.

We aim for steady growth in wealth over time

Investors need their portfolio to retain its pricing power over time. This means delivering ‘real’ (inflation-adjusted) returns, by an amount appropriate to the level of risk you are willing and able to accept. Shares in companies traded on stock markets tend to be the main driver of growth through time but can be volatile. We dampen volatility through careful asset selection and often diversification into fixed income and a range of alternative assets such as real estate, infrastructure and commodities.

We focus on the real value of capital

Management fees, dealing costs, tax and inflation all erode wealth over time. We focus on growing the real value of your capital after all these effects are taken into account, to help you achieve your investment objectives.

We invest over a long time horizon

We are patient investors. While it is important to remain attuned to short-term market movements, which can provide opportunities, these are often driven by sentiment rather than long-term prospects. Our investment process focuses on long-term returns, driven by changes in the fundamental value of assets, whilst retaining a flexible approach that is able to adapt to evolving economic and market circumstances.

We believe in proprietary research

We take a collegiate approach to research, drawing on the depth of expertise from across the firm. A significant proportion of investment managers participate in our research function and broader investment process, which sets us apart from our peers. This collective endeavour reduces biases and ensures we identify best-in-class investments that are appropriate for our clients’ portfolios.

Understanding your needs

Every client comes to us with different objectives, ambitions and circumstances. It is our responsibility to understand those elements and build the right portfolio for you. Your investment manager will help shape your financial future, looking at what is achievable. We help you set investment goals that incorporate your time horizon, your attitude to investment risk and the level of investment returns you need. This is an ongoing, iterative process and is designed to adapt as your circumstances change.

Building your portfolio

We believe holding the right blend of assets – including equities, fixed income and diversifying alternatives – is the primary determinant of long-term investment performance. As a framework for constructing your portfolio we use a range of asset-allocation strategies, built by our specialist in-house team. Your investment manager will fine-tune the allocation to meet your exact requirements before selecting appropriate investments within each asset class.

Responsible investment

As firm believers in the importance of responsible investment, Evelyn Partners is a signatory to the United Nations supported Principles for Responsible Investment (UN PRI) and, under our former brand Smith & Williamson, the UK Stewardship Code. We seek to invest in businesses that operate in a responsible manner. In practice this means that we incorporate Environmental, Social and Governance (ESG) factors as well as financial considerations when building a portfolio, and we use stewardship (active ownership including voting) to encourage firms to improve their strategic thinking and ESG reporting. This is a complex and evolving area. It has significant potential benefits for all parties, as well as risks, and is most effective when applied holistically rather than mechanically. The tailored nature of our service means that we don’t impose our own values on our clients’ portfolios – rather, we can take time to understand yours.

Managing your portfolio

In our Discretionary Portfolio Service, the responsibility for investment decisions ultimately rests with your investment manager, who will manage your portfolio within the agreed parameters established at the outset. They will also ensure that the content of your portfolio responds to changing markets and your circumstances, keeping it in line with your risk appetite, objectives and personal values.

For those who prefer to retain the final decision over changes, we offer an Investment Advisory Service. Your investment manager will be in touch if they think you need to make any changes to your underlying investments, for example as a result of a change in our opinion, and will help you to manage your portfolio. The service also includes an annual review to ensure your investment portfolio remains appropriate for changing markets and your circumstances, keeping it in line with your risk appetite, objectives and personal values.

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