The art of performance
Last year Fairbairn Private Bank was awarded the title Best
International Wealth Manager at the International Investment Fund
and Product Awards and the award marked a four-year milestone for
the bank's discretionary investment management service.
The success of the discretionary investment management service
is particularly impressive set against some of the most challenging
economic and market conditions seen in over sixty years. The global
financial crisis and subsequent recession have had a devastating
effect on investment markets. Wealth preservation has become an
overriding priority for many investors and their advisers, and
there is a growing recognition managing assets and consistently
delivering benchmark, or better, returns is an extremely demanding
task. Inevitably, investors are looking for proven investment
advisers that have been able to demonstrate sound stewardship of
their capital.
As part of its
discretionary investment management service, Fairbairn Private
Bank sets out to develop a thorough understanding of each client's
personal circumstances, goals and wealth objectives. This unique
profile coupled with a defined time frame provides the basis for
portfolio construction and risk management. Regular reporting and
reviews ensure clients are properly engaged in the investment
process and this also engenders clarity in why and for what purpose
the assets are invested.
The core investment principles adopted by the bank are:
- Asset allocation and diversification - the mix of asset classes
within a portfolio is the primary driver of returns for an
investor.
- Risk management - investment risk is multi-dimensional and can
take the form of shortfall risk, volatility risk and liquidity
risk.
- Valuation - the price you pay is an important determinant of
future returns.
The implementation of these core investment principles by
combining active, passive and hedged market access strategies
assists the bank to deliver attractive risk-adjusted returns.
In the current uncertain economic climate, one of the most
worrying risks for many investors is shortfall risk - the risk of
not achieving their terminal wealth target or of actually running
out of money to meet their long-term financial needs. At
Fairbairn Private Bank, portfolios are based on three major risk
models and performance is monitored and calibrated against peer
group portfolios, as measured by ARC Private Client Indices*.
Since their inception, the bank's portfolio models have shown
robust performance against their peer group and this has culminated
in the bank's discretionary investment management service being
shortlisted for the 2010 Private Asset Managers 'PAM' Awards.
By minimising fees and closely controlling a portfolio's
volatility, Fairbairn Private Bank aims to optimise the performance
of its discretionary investment management service and add real
value when measured against each client's specific risk
tolerance.
Following some signs of an economic recovery at the end of last
year, 2010 is again proving a challenging investment environment.
Sovereign risk, dollar strength, inflationary forces and increased
volatility are all developing themes. Navigating these uncertain
times will necessitate on-going economic analysis, careful
investment selection, active asset allocation and professional risk
management. However, with these challenges in mind and an
established track record, Fairbairn Private Bank is well equipped
to take on the current investment landscape.
To find out more about our discretionary investment management
service, please contact your relationship manager directly or our
client services team on +44 (0) 1624 645000.
* The ARC Private Client Indices are a series of indices
calculated by Asset Risk Consultants. More information can be found
at
www.assetrisk.com.