One size doesn’t fit all.
What’s the Citadel investment philosophy? Easy answer. It’s the same as yours.
We don’t have a fixed matrix, or set of variables. Instead, we prefer to understand exactly what our clients want their money to achieve. Essentially, then, we’re client-led not product-driven. Our advisors don’t earn commissions, so won’t offer you anything you don’t need. Fees are transparent. Advice is honest. Your success is ours.
Perhaps that’s why more than 97% of people who invest with us, stay with us.
Our investment team is highly regarded as experts and thought leaders when it comes to understanding the investment landscape, the drivers and sources of returns and the implications for valuations across asset classes and under ever-changing economic and political circumstances.
A VALUATION SENSITIVE APPROACH TO INVESTING
Every asset class or investment has an intrinsic value. This inherent value does not fluctuate greatly over time. However, market perceptions of the fundamental value of asset classes typically fluctuates widely, which means market prices often diverge materially from intrinsic value. We base our investment decisions on identifying such under- and over-valuation of asset classes. This means that contrary to sentiment, which sells low and buys high, we are positioned to buy when assets are undervalued and sell when they are becoming overvalued. If there is any ingredient that is critical to successful investment behaviour, this is the component. Not only does this process optimise long-term returns, it also reduces risk.
ASSET ALLOCATION DRIVES PERFORMANCE
A wide body of research and evidence shows that the bulk of investment returns can be attributed to decisions concerning asset allocation. In this regard, asset classes – both local and global – include listed equities in developed and emerging markets, cash, government bonds and property, as well as high-yield and emerging market bonds (including corporate bonds) and alternative strategies (such as hedge funds and physical assets).
REDUCING RISK EFFECTIVELY
Most investment markets exhibit price volatility, which is unpredictable over shorter periods. Through the effective combination of different assets in a portfolio, one can successfully reduce risk without compromising returns. A portfolio that consists of a range of asset classes that behave differently to one another as market circumstances change is an important component of any investment strategy. Invested in these different sources of return is the basis for a robust investment portfolio that should preserve and grow wealth consistently over time.
THE FUTURE IS UNCERTAIN AND WILL OFTEN SURPRISE
The future is uncertain and impossible to predict. While we cannot forecast the future, our team of experts can build investments that are able to cope effectively with uncertainty. When unforeseen events arise, our portfolios are built to absorb such uncertainties and stay the course. Employing this approach means emotions can be kept out of the process. We stress-test our investment strategy and portfolios against various economic scenarios and adjust portfolios where necessary to minimise the impact of uncertainty and unexpected surprises. In this way we acknowledge and mitigate the risk attached to an uncertain future.
Strict adherence to these pillars guards against emotional investment decisions and enables Citadel to construct robust, long-term portfolios. This is the bedrock of our investment philosophy; and the approach which underpins our investment practice.