When you invest your wealth, you can protect its spending power against the impact of inflation and also grow its value. It’s best approached as a long-term process, which requires patience and the commitment to stay invested when markets fall, as they inevitably will from time to time.
We believe in the value of active management and a diversified approach incorporating multiple asset classes, regions and strategies. Our investment framework brings together our outlook for the global economy with expertise in asset allocation, investment selection and portfolio construction.
You can access our investment process and expertise in a way that suits you. Many people choose our discretionary management service, where we construct and then manage a portfolio on your behalf. Those with the time and confidence to make their own investment decisions prefer our advisory or execution only services. Whichever route is right for you, you’ll have direct contact with the people responsible for managing investments and providing advice.
Investing successfully today requires foresight to navigate the risks as well as imagination to seek out new opportunities in the global markets.
Our Investment Philosophy
Our Investment Philosophy
Our investment philosophy centres on four guiding principles:
1) Get the big decisions right. Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to investment goals, risk tolerance and investment horizon. We believe this is the most important decision we make, and it should be actively managed.
2) Take risk only when risk is likely to be well rewarded. We believe valuation is the key driver of long-term returns. When assets are expensive, risk is not well rewarded; when assets are cheap, it is.
3) Avoid large losses. We construct portfolios which seek to withstand a continuously changing market environment.
4) Invest responsibly. Look after tomorrow’s world today. We aim to improve investment performance by investing in companies with strong environmental, social and governance credentials. Across our direct security investment portfolios, we limit exposure to key controversial sectors such as: adult entertainment, controversial weapons, gambling, tobacco, and thermal coal. We also exclude companies involved in very severe controversies as defined by Morgan Stanley Capital International (MSCI).
Our investment process
We have designed a VaMoS framework to put our investment philosophy into practice and build portfolios. Organised around four core pillars, we use this framework to guide our decisions as we identify and select investments from a wide range of asset classes including cash, equities, bonds, commodities and alternative strategies.
Consider expectations for investment returns as market conditions change.
Favour assets with good fundamentals that are cheap and avoid those that are expensive
Acknowledge and exploit market behaviour by buying assets that are rising in value and avoiding/selling those that are falling.
Buy assets when investors are pessimistic and reduce exposure when investors are optimistic.
At Kleinwort Hambros, we aim to demystify responsible investing, while combining the strengths of all conventional approaches. Our proposition incorporates the merits of ethical, ESG, sustainable, and impact investing. From the exclusion of controversial sectors to the direct influence of impact funds, we have adopted techniques spanning the spectrum of responsible investing principles.
You may wish to delegate investment decisions to our experts, either because you do not have the time, or the immediate access to market information to make timely investment decisions. Perhaps you simply prefer to entrust an investment professional with your financial assets.
You make the final decision on your investments with advice provided by our Investment Management experts. We provide you with the expert investment knowledge you need to make informed portfolio decisions, allowing you to stay in control of your investments.
Invest directly in the markets with no investment advice provided by our experts. You are passionate about making your own investment decisions and simply require a platform to execute orders.