Investment objectives
Understanding your investment objectives
Personal consultation is the cornerstone of any investment mandate. Harper Bernays will only structure a portfolio after considering your investment needs, objectives and financial circumstances. As a first step, we meet with you to discuss your objectives and understand your circumstances. In particular, we assess your investment horizon, your capital growth and income requirements, your diversification and ethical preferences, and your risk profile.
Investment horizon
One of the first considerations will be to establish your ‘investment horizon’. This involves determining the length of time for which you are able to invest and whether you will need to access your funds at any time. Most of our clients invest for a minimum of 3 to 5 years. We have found that the best returns are achieved by investing in excellent businesses with a long-term view.
Growth and income requirements
We will discuss whether your priority is to generate dividend income from your portfolio, create capital growth or both. We will then identify companies which are able to generate a level of growth and/or income that meets your objectives.
Risk profile
We will discuss your tolerance towards risk and your expectations for investment returns. Understanding your risk profile and time horizon will assist our investment managers in determining the suitability of a particular investment for your portfolio. We will then select shares which meet your investment objectives, comparing your risk profile with our risk assessment of particular investments to ensure that they are suitably aligned. Risk is inextricably linked to the investment horizon. By extending the length of time for which you invest to several years, you can significantly reduce the market-related risk element of your investments. We aim to build a portfolio which gives you the highest return at the level of risk with which you are comfortable.
