Knowing Where You’re Going Matters
What you believe matters – it drives your behavior, which drives the outcomes you get. This is true in investment portfolios, just as it is in life.
In our latest Sound Thinking, our Chief Investment Officer Ian Toner reiterates the five key things underlying our investment beliefs, and describes why they matter for our clients’ portfolios.
- Return objectives, tolerance for risk, and the strategic mission of the enterprise should guide all decision-making and drive strategic asset allocation
- Good results can best be achieved by managing uncertainty using a varied risk management and investment toolkit, combined with the discipline of humility
- Risk-free rates and risk premia drive most market returns, and are themselves influenced by market and economic fundamentals
- Investment skill exists, and the deployment of active management where inefficiencies can be exploited is essential to achieving investment success in both public and private markets
- Fees and costs must be managed and appropriate. Simplicity in portfolio structure is often preferable to and more effective than fashionable complexity
When Verus works on portfolios these ideas are at the heart of the process they use.
Please note that the link to the podcast is a shortened presentation of the attached article. All references in the podcast to material events or market information are noted with citations in the attached article entitled ‘Knowing Where You’re Going Matters’.
- Verus Sound Thinking: Knowing Where You’re Going Matters (PDF)
- Verus Sound Thinking Aloud: Knowing Where You’re Going Matters (MP3 Podcast – 9:09 min.)