At Real Asset Management our investment philosophy is built around keeping the investment process simple and transparent, and ensuring that our clients are at the centre of everything we do. We seek to provide our clients with capital protection and yield enhancement through core holdings in highly liquid financial assets, as well as enhancing long term returns through investments into “real” assets such as real estate, infrastructure and agribusiness investments. We avoid structured and synthetic products where the risk and return may not be apparent to the investor.
The core tenants of our Investment philosophy are as follows
The priority of risk control
Our primary focus is the preservation of our client’s capital. Our investment products and processes are designed and managed to ensure we monitor and minimise key risks, be it the underlying investment, custody or operational.
Institutional in approach
Our goal is to bring institutional investment and risk management to the private client world. Offering regulated investment solutions and processes, supported by highly regarded service providers.
Contribution of Real Assets to portfolio returns
The presence of real assets enables us to deliver strong, steady and consistent returns for our clients with the healthy generation of income along the journey, thereby reducing volatility of returns.
Simplicity and Transparency
To us this means our clients can easily understand how their wealth is being managed and be confident it will meet their expectations.
Long term focus
As a private client practice we seek to manage wealth over the longer term, including the succession to the next generation. This perspective means that we are unlikely to be distracted by short term events and focus instead on the meaningful investment decisions.
Protecting your assets and ensuring sustainable performance even in difficult market conditions is our goal. Our highly qualified and experienced team is supported by a systematic and dynamic advisory process that assists in the assessment of your financial situation. Thanks to this holistic approach, you gain access to our global financial competencies, while the market-oriented investment and advisory process allows for an appropriate response to market developments whilst not losing sight of the longer term time horizon.
We aim to understand your needs and put them at the centre of your personal wealth strategy.
We take the time to listen to you, to understand your financial and life style goals. Then we work together to maximise your investment opportunities. Examples include:
- Return expectations
- Risk tolerance
- Time horizon
- Tax residency
- Investment restrictions
With reference to your investment profile and risk tolerance analysis, we create a ‘Financial Roadmap’ and investment strategy to help you achieve your goals. Strategies include:
- Wealth Optimisation
- Tax optimisation
- Liquidity and retirement planning
- Simulation of expected returns
- Tailored investment solution
Leave it to the professionals, you don’t have the time to constantly manage your investments or to worry about the day to day tactical decisions. Our advisors can assist you in establishing an optimal investment strategy in line with your risk profile and individual needs and objectives. Transparent and precise reporting will keep you informed at all times.
We have carefully considered the risks faced by our clients and how we can help reduce those risks. They can be broken down into three main areas.
At its most basic level investing is an exercise in taking risk and, therefore, having a firm grasp on risk management is essential. In our work with some of the largest investors globally we have found that having and overarching framework for allocating and monitoring risk can often make the difference between investment success and failure. Fundamental to our approach is diversification across both financial and non-financial assets and within financial assets across sectors, geographies and securities. Drilling down a level, we summarise below the main aspects of investment risk along with the key tenets of our approach.
Volatility Risk – the risk that swings in asset prices may impact the value of the investment
We do not employ complex models and whilst there is some merit in quantitative measures a level of qualitative analysis is also important. We use a range of measures including Sharpe, information ratios and Value at Risk (VaR) combined with a common sense analysis.
Liquidity Risk – the risk that you may not be able to access the investment when you require it
We endeavour to run liquid portfolios and in our experience, if liquidating a managed portfolio in entirety, we typically receive substantially all the proceeds within an acceptable period, depending on the asset class.
Expectation Risk – the risk that the investment case is invalid and unsuitable
The key here is to understand what you are dealing in, what the investment is supposed to do and for whom you are buying it for. Risks include counterparty risk and the use of leverage in the underlying investments. Market risk and stock specific risk are considered on an on-going basis.
Credit Risk – the risk of default on a debt that may arise from a borrower failing to make required payments
We take a prudent approach when selecting bonds and other income generative investments for our clients. For instance we select only investment grade bonds and a take time to have a deep understanding of the credit risk inherent in our real asset investments.
The security of our client’s assets is of paramount importance and to us, and central to our obligations as a Wealth Manager. Our business is structured to provide the highest level of security, including the complete separation of client’s assets from the firm’s assets and the outsourcing of critical functions such as custody of client’s assets, cash management and Trustee services. Key points to note:
100% protection of client assets
All assets managed on behalf of our clients are held with a custodian or on trust and do not in any way comprise assets of the RAM Group. This complete legal separation of assets ensures that the security of client assets has relationship to the financial wellbeing of the RAM Group.
Who holds your Investments
Our main custodian is BNP Paribas is one the world’s leading financial institutions. Headquartered in Paris France the bank employs more than 190,000 employees in 70 countries. Global Finance named BNP Paribas the World’s Best Global Corporate Bank of 2013.
Cash in Safe Hands
Clients may retain surplus cash on deposit with major banks, which may be held in managed investment schemes or on trust. It is important to recognize that here too there is a complete separation of assets. That is no RAM Group corporate funds will be held in any clients cash accounts, and the cash balance will not be available any RAM Group creditor.
The role of a “Trustee”
In the context of investment funds a Trustee is one who safeguards assets that are held in trust for the investor(s). A trust is a legal structure commonly called a Managed Fund or Mutual Fund that holds assets on behalf of investors, who remain the beneficial owners of the assets held in the trust.
Structuring investments through a regulated trust provides security for investors as they may rest assured in the knowledge a substantial Trustee company is safeguarding their assets. For instance in jurisdictions like Australia the role of the Trustee or “Responsible Entity” is highly regulated with strict requirements including being a public company with substantial tangible assets and insurance cover in place, as well as holding an Australian Financial Services License.
As a regulated investment management firm, we need to constantly verify we have the right people, procedures, systems and contingency plans in place. This is to ensure we may minimise the potential risks arising from a possible breakdown in internal procedures, or when facing external risks. In detail:
The first line of defence in any organisation is its people. We are fortunate to attract and retain staff of the highest calibre, having decades of experience garnered from the world’s largest financial firms. Moreover as an independent firm owned by its staff, our interests are completely aligned with our clients in ensuring a successful business and financial partnership for the long term.
RAM Group entities are licensed by the Securities & Futures Commission (SFC) of Hong Kong, the Australian Securities and Investment Commission (ASIC) of Australia, and the Cyprus Securities and Exchange Commission (CYSEC) of the Republic of Cyprus. Accordingly we are required by law to establish and maintain a significant compliance region across multiple jurisdictions, aided by specialist advice from leading professional firms.
In partnering with premium technology platform providers in each location, we ensure that our business is supported by state of the art systems that allow us and our clients to monitor, manage and reduce potential risks.
Business continuity management
We have in place a comprehensive Business Continuity Management Program and Disaster Recovery Plan to ensure there is no interruption in service to our clients and that their information and data is protected. Our formal security protocols for the safe keeping of all client information use technologies such as encryption, intrusion prevention systems and behavioural anomaly based monitoring solutions.