Raymond James® Investment Services

Investment Philosophy

We believe above average returns can be achieved by using active investment management.

The decade ending 31-12-2010 saw the main Global Indices ( FTSE 100, S&P 500 and NIKKEI ) all finish in negative territory providing the harsh reality to savers that even over the longer term asset prices don't always end higher.

Although we believe capital markets are efficient over the longer term, volatility over the shorter period often leads to inefficiencies and the opportunity for capital appreciation and profit.

Today's environment sees economic events having more influence on asset prices than purely by supply and demand forces. We anticipate the marketplace will be subject to waves and change , with capital market returns reflecting this. We believe this could take 3 main forms;

  • The desire for income and short term yields, which will come from a number of areas but typically those in retirement looking to uphold their lifestyles and improve on the prevailing low interest rates. Institutional and public sector pension provisions will require increases to keep pace with the cost of living and with the increasing number of claimants.In addition to lower economic growth figures throughout developed nations, local authority and government funding will also require additional income.
  • Intervention by governments and central banks seeking to influence and motivate policy and political advantage. We believe that this will come in the form of actions through money supply, taxation and currency manipulation.
  • A change in the financial architecture at National level and Regional level, in the form of ‘shoring up’ bank capital, country deficit down to local authority funding. Even a trading block such as the Eurozone may see further fundamental financial architecture.

Globalisation has reduced diversification and we seek to use a number of independent strategies with their own unique drivers and different timescales to accommodate the above waves. Our investment process with intuitive and timely action seeks to capture profit and provides downside protection on portfolios. We believe in delivering real returns with less benchmark orientations. And use a research process that embraces unconventional thinking and seeks to uncover global opportunities.