Investment Beliefs

MCG Wealth Management's investment beliefs help govern the way in which we manage client portfolios:

  • Risk is somewhat more predictable and manageable than return, especially over the longer term.
  • Although risk is multidimensional the primary risk to be managed is material loss of capital.
  • Returns are somewhat more predictable and manageable over longer horizons than over shorter horizons.
  • Asset valuations drive expected returns over the long term but far less so over the short-medium term where sentiment can dominate.   
  • Some investments have high expected returns especially in the less efficient parts of the capital markets. Capturing them requires a high degree of skill and an acceptance of meaningful levels of risk.
  • A focus on absolute rather than relative returns is fundamental to wealth management success.

  • Portfolios can be crafted to provide ‘reasonable’ trade-offs between absolute returns and the risk of material loss. Generating such superior risk-adjusted returns requires high degrees of investment insight and skill.