As anyone who had money invested in 2008 will know, the world experienced a financial crisis which saw all markets, regardless of asset class and risk profile, fall by up to 40%. This was an extremely unusual and worrying period for us all. Since that time we have witnessed a new era of austerity, high levels of market volatility, low interest rates, and a protracted period of low growth. Even the most optimistic experts agree that it is extremely difficult to maintain attractive investment returns in this economic environment.
Chartwell decided to implement a core investment strategy in response to the challenges of the 2008 financial crisis which pursues portfolio structures that endeavour to provide above average returns from investments that demonstrate lower-than-average volatility (risk). The aim is to protect investments when markets fall and to capture much of the upside when markets rise, so as to deliver more consistent investment returns over the short, medium and long term.
The portfolios and the funds we use are reviewed quarterly by our Investment Management Committee to ensure, as far as possible, that they continue to meet our own and our clients’ objectives, in terms of performance and risk. We believe this to be a proven sound approach which has generally delivered required returns in this challenging investment and economic climate. However, the fundamental principles of investment markets have changed significantly since September 2008, and access to in depth research capabilities and sophisticated analytical tools are now essential in delivering robust and resilient investment portfolios for our clients.
After many months of research, due diligence, and negotiations, we are pleased to have appointed Russell Investments to assist us in delivering our investment solutions.
Russell Investments may not be a name that you instantly recognise, but you will be familiar with many of the major international companies who rely on their expertise to provide the capital markets research and analysis required to manage in excess of £150 billion worth of investment funds. In business since 1936 Russell advise on the investments of some of the world’s largest companies including Toyota, Coca-Cola, Sainsbury’s and Barclays.
Their approach to the selection of investment managers and investment markets is forward looking rather than relying on past performance data to make decisions. They focus on delivering consistent returns, whilst managing risk and volatility. This, aligns clearly with our key investment objectives, and those of our clients.
In conjunction with Russell, Chartwell are able to provide five risk graded portfolios ranging from secure through to aggressive. The portfolios are made up of four key funds – UK Growth (UK shares), International Growth (stock markets around the world), Real Assets (Commercial Property, Infrastructure etc) and Defensive Assets (lower risk investments such as Cash, Bonds and Absolute Return funds).
Underlying these four funds are around 50 separate fund managers who have been specifically selected by Russell, undergoing rigorous research and ongoing monitoring processes.
We believe that by partnering with Russell, Chartwell are able to offer our clients a broader wealth management proposition with greater in-depth research and expertise, normally only available to large corporate investors.
We will discuss our new investment proposition with our wealth management clients at review, but in the meantime you can download corporate investment brochure for more information.