Investment Management

No Commissions – Fee Based Investing

When it comes to investing, understanding, and controlling risks is the key to success.  That is why at H Capital we devote a lot of time to exploring your risk appetite, before we even think about investing. It is, after all, essential we are on the same page as regards understanding risks.

Once we have established your ‘risk appetite’, we start by building your investment portfolio from the ground up. First, we select from a handful of proven investments that historically have provided steady, predictable returns with minimal volatility, to form the foundation of your portfolio. We have the advantage that we are free to choose any investment manager from any fund management firm anywhere in the world. Then, depending on your personal circumstances and preferences, we build the remainder of your portfolio moving up the risk-scale as appropriate, but always with the aim of controlling risk through diversification, by including assets that are non or minimally correlated. In other words, we include different types of investments (asset-classes) that do not react in the same way as one another.  For example, real estate does not react/behave in the same way as shares and bonds.

Evidence Based Investing is our core investment philosophy, which means that rather than relying on short-term forecasting, we draw information about expected returns from the stock markets. Allowing markets to do what they do best, drive information into prices, frees us up to spend time where we believe we have an advantage, namely in how we interpret the research and how we design and manage portfolios. Our approach recognises that no single investment house or manager excels in every area, so we carefully select those managers that have demonstrated an ability to deliver consistent returns. This means we take a more systematic approach to investing, an approach we can implement consistently, and investors can understand and stick with, even in challenging market environments.

Our in depth research and due diligence on a wide variety of investments, culminates in the production of a Preferred Investments List (PIL), an internal document that lists all the investments that we are comfortable to recommend and include across all portfolios, including our own portfolios – yes, we personally invest in the exact same investments as you!

In summary, there are five steps to establishing your investment portfolio: -

  • We must get to know you and you us! Your current financial circumstances, future goals, and objectives will be discussed, and through this process your risk appetite will be determined.
  • If you have an existing investment portfolio, a comprehensive portfolio analysis will be carried out, which will include a comparison of how your portfolio has performed in relation to a relevant peer group.
  • Specific investment recommendations will be made, the details of which will be discussed and agreed with you prior to implementation.
  • If at that point you are happy to proceed, your account will be established, and the recommendations will be implemented.
  • Thereafter, a regular quarterly review will be sent to you, which will include a generic market commentary and specific details as to how your investments have performed during the reporting period.

Our investment management fees are charged as a percentage of the assets we manage which means we only prosper when our clients do. That way our interests are totally aligned.

Please refer to services – Our Fees – for details of costs.