Stewardship Financial Planning

Investment Philosophy

• Diversification is paramount.
• There is a strong relationship between investment risk and return.
• Asset allocation (i.e. the exposure to shares, property, fixed interest and cash) is the main determinant of investment return.
• Exposure to shares and commercial property should over time reward investors with higher returns than cash and fixed interest.
• Value companies and small companies, in aggregate, should provide superior returns than the relevant share index over the long term.
• Liquidity is essential.
• Markets are largely efficient (i.e. asset prices quickly reflect most available information in the market as well as the expectations of investors).
• Pricing errors do occur in the financial markets however they are normally only identifiable with the benefit of hindsight.
• Very few market participants are able to outperform a given market in a sustainable manner.
• Investment costs and tax should be minimised to provide superior investment performance.

Information Sheets