In working to achieve the investment objectives the following process is undertaken:
- Set appropriate long-term strategic objectives:
- Create a benchmark appropriate to the client’s liabilities, return objectives
and risk appetite.
- Carry out stress and scenario tests to help set the long-term strategic
objectives embedded in the benchmark.
- Establish guidelines for permitted asset class exposures.
- Set a risk budget (e.g. Value at Risk relative to liabilities and tracking
errors etc.) appropriate to the client’s risk appetite.
- Take tactical investment positions reflecting:
- Top-down market views.
- Bottom-up market opportunities.
- Ensure portfolio is balanced:
- The portfolio should be a collection of good ideas and opportunities, which,
when aggregated, form a coherent set of investments.
Charles Taylor Investment Management Company Limited is authorised and regulated by the Financial Conduct Authority (FRN148462).