Investment Management | Financial Planning | Introduction
Rowan spent over a decade developing a structured and controlled investment methodology which could be cost effectively offered to all investors as the core of their financial planning. We firstly sought to refine a clear and rational investment methodology which offered investors the ability to;
- understand the relationship between risk and return in investment,
- make a rational judgment as to their personal tolerance towards risk,
- recognise the potential returns that this level of risk would enable.
We wish to end unrealism regarding “star managers”, extraordinary returns and the often misplaced relevance of past performance.
In essence, the investment methodology had to be capable of managing and meeting expectations. The result of this work was the Structured Investment Service.
Rowan defines five asset classes; speculative equity, traditional equity, fixed interest, property and cash. Using historical evidence we demonstrate the different returns of each asset over recent years, including actual examples of greatest losses and greatest gains. We use volatility to indicate the likelihood of loss (or gain) and demonstrate in our documentation how combining different asset class combinations can change the core risk/return structure of a portfolio.
Once understood, our client’s are asked to select, with the guidance of their professional advisers, the appropriate percentage weights in each asset class and the portfolio will be assigned a benchmark. Benchmarks are composites constructed from the matching weights in the underlying market.
