Javius Strategic Partners’ approach to investing places emphasis on portfolio management that is individually tailored to the circumstances, needs, and objectives of each client. We carefully listen to you to thoroughly understand your goals, attitude to risk, time horizon, and other factors. We use the knowledge we gain to create an investment strategy solely for you. Your investment strategy provides the foundation for determining an allocation of assets that weighs risk against reward over the long-term. Asset allocation and diversification are critical to sagacious portfolio management, and risk management is a central consideration of our investment philosophy. While our stock selection process aims to deliver long-term capital appreciation, we seek out growth opportunities that have an appropriate risk profile.
Our in-house Investment Committee conducts thorough and detailed research before arriving at investment decisions. They use both a top-down and bottom-up approach to investing, carrying out in-depth studies of the company and an analysis of the wider industry, sector, economy, and geopolitical climate. Only after thorough deliberation do we invest in holdings that meet your objectives. We have an ongoing review process looking at alternatives and make changes when more appealing investment opportunities arise. In the main, client funds are invested in individual securities rather than mutual funds. This approach lowers costs and increases flexibility.
We design the fixed income segments of portfolios to produce income and add stability while not overlooking safety. To better manage the risk exposure of your portfolio's income-generation, we diversify investments among issuers, industries, and sectors to help mitigate changes in interest rates, financial markets, and other areas that impact income. By typically holding bonds until maturity, we can deliver a more reliable income stream and reduce transaction costs. Bonds are purchased to suit your particular time horizon and the interest rates available at the time. If we are in a rising interest rate environment, we tend to buyer shorter-dated bonds so that when they mature, we can reinvest the proceeds into higher-yielding securities. When the interest rate trend is downward, we tend to buy bonds with a longer maturity date to lock in the prevailing higher yields.
Purchases of fixed income investments are only made after a lengthy research and analysis process has been completed. The price, yield, maturity date, appropriateness of the security, and strength of the underlying company, industry, and sector are all reviewed. All these factors are taken into account within the framework of your own personal investment objectives. When choosing fixed income investments, we consider the whole range of government and municipal bonds as well as high-quality corporate offerings. We constantly review fixed income holdings, the interest rate environment, and the general market conditions that impact your portfolio.
Our equity selection process seeks to find holdings we can hold for an extended time and emphasize capital growth. We usually strive to preserve a balance between growth and value styles by diversifying in large, mid, and small cap companies. The risks associated with market timing can also be reduced by constructing a widely diversified equity portfolio. This strategy also removes the need to speculate on which area will perform best in each period.
Our top-down approach uses a comprehensive study of the economic and financial environment and attempts to pinpoint areas of opportunity as well as areas to avoid. We seek to identify current and developing trends and then use our findings to narrow down the field into companies that we wish to investigate further for possible inclusion in client portfolios.
We use quantitative and qualitative measures to assess the growth and value features of a company during our bottom-up approach.
Some of the characteristics we look for include:
- Conservative accounting
- Above-average return-on-equity ratio (ROE)
- Below average debt-to-equity ratio (D/E ratio)
- Growth in sales, revenue, and dividends expected to be above average
- Strong industry positioning and exceptional management capabilities
- Sensible price-to-earnings ratio (P/E ratio)
- Finances that can withstand periods of economic downturn
- Higher than average research and development expenditure on new products and services
After inclusion in a portfolio, we continue to monitor an equity holding in terms of its metrics but are also mindful of the overriding market and economic environment and the client’s unique investment strategy.