Modern Portfolio Theory - building a portfolio unique to your circumstances.
“Ignore fluctuations. Do not try to out-guess the stock market. Buy a quality portfolio and invest for the long-term.”
Source: Sir John Marks Templeton (November 29, 1912 – July 8, 2008) was an American-born British stock investor, billionaire, businessman and philanthropist.
Temple Bar’s approach to investments is based on Modern Portfolio Theory, research that has shown that by far the dominant contributor to total portfolio returns is the asset allocation (that is the proportion held in shares, property, bonds and cash). Furthermore asset allocation, on average, accounted for 91.5%* of the variation of portfolio returns over time.
*Source: Brinson, Singer, Beebower, 1991
Risk and return
An ideal asset allocation differs from investor to investor and is based on the level of risk each investor is prepared to accept. Temple Bar therefore provides investment portfolio construction tools that determine an investor’s investment risk profile and an asset allocation that, in theory, will provide maximum returns for that level of risk. In doing so it gives individual investors access to expertise previously only available to large institutional investors.*
*Source: Harry Markowitz doctoral thesis
Funds & Fund managers
We base all our portfolio recommendations on multi-class investing. We do not pick individual stocks. Rather, we implement investing strategies that emphasise asset allocation and minimum trading. The result is a portfolio that aims for a solid long-term rate of return while minimising expenses and taxes.
Our goal is not to beat the market, but to achieve a healthy rate of return that allows our clients to achieve their financial dreams without exposing them to unreasonable risk. By using investment management strategies that have been extensively researched and refined to work in both good times and bad, our clients can relax, knowing their portfolio has been specifically designed to withstand the day-to-day and year-to-year fluctuations in the market.
As independent advisers Temple Bar has access to a “whole of market” range of funds, and fund managers representing all of the main asset classes and world markets.
Albert Albert Einstein is reputed to have said:
Compound interest is the greatest mathematical discovery of all time.
To view the benefits of compound interest, regular savings and reinvested dividends view the video below:
PAST PERFORMANCE IS NOT NECESSARILY A GUIDE TO FUTURE PERFORMANCE. THE VALUE OF AN INVESTMENT MAY GO DOWN AS WELL AS UP.
Copyright Temple Bar Independent Financial Advice Ltd