The value of investment expertise
While initially we spend a considerable amount of time focused on developing an investment portfolio strategy to sustain our clients, we recognise that often this overshadows discussion about one of our core pillars - Investment Management.
Our clients are different; they have either accumulated meaningful wealth or are well on their way to doing so. The investment solution suitable to a larger portfolio may differ vastly from one to the next. Our investment approach is centred around building larger bespoke portfolios.
Scale affords us the ability to employ specialists to focus on only your needs. It also opens the door to a wider range of investment alternatives.
The Redwood investment approach
We start with a clear mindset.
We are focused on achieving sustainable, risk aware, after tax outcomes, while meeting your needs.
In order to deliver this, we must:
- Have an unquestioned understanding of your needs;
- Carefully construct and manage portfolios to provide sufficient returns in excess of inflation and tax, while still meeting your needs;
- Invest a reasonable allocation of your capital in growth assets (expose ourselves to some risk). These assets must be capable of growing their earnings at least in-line with inflation, delivering growing dividends and driving valuations;
- Value liquidity. Ensuring that a meaningful part of your portfolio (the majority) is invested in highly liquid assets. This will include cash. We must always aim to have sufficient liquidity to ensure we are never forced to sell an asset at an inappropriate time;
- Understand everything we invest in. By applying our rigorous analytical process, we gain an understanding that allows us to manage and reduce your risk. Transparency offered by investing predominantly into direct/listed investments allows us to develop this understanding;
- Be tax aware. By developing a strategy that considers the tax implications of buying, holding and selling particular investments, we can greatly influence the tax outcomes and, as a result, enhance after tax returns;
- Continue to assess the landscape. While understanding the qualities of the underlying investments and your needs is essential, we must continue to overlay a robust understanding of global and domestic economic, market and political issues; and
- Keep it simple. The investment industry has a habit of making things complicated; it does not need to be this way. We will let you arrive at your own conclusions as to why. We will always look through this, identifying the simple, transparent and sustainable solutions.
At Redwood, our unique combination of investment analytical and strategic tax expertise, together with an enormous amount of rigor and discipline, allows us to deliver on these objectives.
While we recognise you are employing us for our investment expertise, we see a critical part of our investment role as educating our clients in the investment process. This is not with the view of making our clients investment experts, but rather building their knowledge, giving them comfort and confidence that their assets can sustain them.