YOU OWE IT TO YOURSELF TO PROTECT YOUR CAPITAL

The pre-investment planning process is often well done. Yet after your circumstances have been considered, such as: Age, Income, Pensions, Tax Structures and Estate Planning, it will all eventually come down to how well your investments perform. Sadly, this is the area of most dissatisfaction for investors and one which impacts most on life choices. If you don’t make profits, tax mitigation is of no consequence.

If you would like to watch a short video about investment performance, this will give you a quick perspective on the value of using artificial intelligence in investment management and the results for private investors. Go to our articles page and watch the video, Sigmaplus..

Before making that important decision to invest, read on below, this page contains more information on Active and Passive investment, and the next page gives you insight into our CapitalCare Service.

Pension/Capital needs optimising

CapitalCare was originally developed for our wealthy clients, but is applicable to everyone. CapitalCare is a step beyond the standard advising practice, that that can often leave investors in a mist over the performance of their assets. Nothing is quite as clear as it should be. CapitalCare brings together your personal financial circumstances, technology and the use of some basic mathematics in the form of a probabilistic scenarios.

Step 1. Portfolio Analysis – Stress testing is essential. We use a methodology to give a directed-cloud of likelihoods of your unfolding financial position. Clients’ get to visualise the probable and improbable scenarios that can play out. They take more charge over outcomes, and with confidence.

Steps 2. Use of Artificial Intelligence – Perimeter Consultancy has an Advanced A.I. advisory service – SigmaPlus. The results achieved to date demonstrate that portfolios utilizing the SigmaPlus service have mostly achieved superior returns with lower volatility, and in many case lower trading costs. The majority of these portfolios have consistently outperformed their chosen benchmark. To achieve optimum results we can select one or more portfolios to match your needs.

Step 3. Tax Mitigation – We advise our clients on ways to legally minimize their taxes. In addition, we can advise on 2nd passport, alternative tax residence and sophisticated ways to maintain client privacy. We work with world leading authorities on taxation for our Ultra High Net Worth Clients and our expert on international taxation has designed frontier solutions on tax mitigation.

Active Investment

There are very many Active Investment Strategies marketed, many claiming superiority over others, all of which is baseless noise. The simple fact is that most asset managers fail to beat their benchmarks, and the news media have made them pay dearly. The March Away from Active Managers toward Passive Investment has been truly enormous.

The reasons for benchmark failures is complex, but largely it comes down to competition and strategies all very similar. The large scale influx of educated talent across the many investment houses over the years has meant competition is tough and impacts their results by virtue of the sharing out of investment returns.

A primary limitation of all humans in supplying results consistent with investor expectations turns out to be simply being human. We all have biases that affect our perception of the world around us and the decisions we make and this is exacerbated in the hot oven of asset management. When it comes to absorbing the very high dimensional data coming from the markets, humans cannot match machine. So computers are used, but so far they are used as a support calculation tool, which clearly does not aid out-performance.

Our view is that many Discretionary Asset Managers provide a good service to their clients when the full picture is examined. But is this enough?

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Passive Investment

There is no doubt a Passive Investment is “cheaper” than its Active counterparts and performance by its very nature is close to its benchmark, so outperforming a similar sector active fund is likely. Randomly selecting a Passive against an Active Fund (or ETF) is very likely to experience superior performance. Job done? Not quite.

Investment performance when filtered down to Passive v Active in individual sectors may well better serve random selecting passive investors, but in terms of a broader picture, this will likely not be the case. A discretionary asset manager will build a portfolio to suit your circumstances and will apply intelligent geographical and well as asset class allocation.

Passive investors tend to stay close to what they know, so for UK investors a FTSE 100 Tracker is a common default position. Over the past ten years international markets have done much better, and this is a huge opportunity cost.

read our article on the Hidden Pain Of Passive Investors