Investment Beliefs

• Long term, asset mix is the main determinant of portfolio return and risk.
• Diversification can improve portfolio risk and return characteristics.
• There is an expected long term risk premium from investing in equities over risk free government bonds and higher return expectations generally require higher risk exposures.
• A long term investment horizon provides opportunities to earn higher expected risk premiums from illiquid assets.
• Market timing does not consistently add value or return.
• Passive investment management should be utilized unless it can be demonstrated that, net of fees, active management can add value.
• The prudent use of derivatives can help manage risk and enhance returns.
• Advocating good corporate governance is in the best interest of shareholders and can create value for our clients.
• Strategic currency hedging can be implemented at the portfolio level to mitigate overall portfolio volatility from foreign currency-denominated investments.
• Investment decisions based on non-investment criteria may not earn a required rate of return.