Invest

Traditionally, many investors have held a spread of collective investments (e.g. unit trusts) and committed their monies to these funds for the long term, trusting that those funds would provide them with a superior real return compared to cash deposits.

We would still expect a diversified portfolio of investments to provide meaningful long-term real returns, but in view of the more volatile conditions that have become the norm in recent years, we believe that fund portfolios need to be proactively reviewed. The events of October 2008 led us to formalise a different approach.

The Directors of the firm have followed this approach since 2009 under previous employment, and the investment strategies we use today build on that experience.

Specialist investment management from PMX

Towards the end of 2023, we entered into a partnership with PortfolioMetrix (PMX) who now lead our long-established managed portfolio service.

PortfolioMetrix (PMX) is a specialist investment management firm that partners exclusively with independent financial advisers. Founded in 2010, PMX operates in the United Kingdom, South Africa, and the European Union, providing robust investment capability and operational support to advisers who want to stay at the centre of the client relationship.

Click here to hear more from the Avatar of Alex Funk, the Chief Investment Officer of PMX, about the underlying investment philosophy.

PMX Investment Philosophy PDF

Where appropriate, your investments may be placed into one or more of the five portfolios that PMX manage on a discretionary basis for Autonomy Wealth clients. Alternatively, as independent financial advisers, we may recommend you hold other actively managed or passive fund solutions instead or alongside these. It all depends on what is most likely to meet your goals in the most cost-effective way.

Risk

More risk does not always equal more reward: rather, the more risk we take on, the greater the range of outcomes that can await us. Take no more risk than is necessary to achieve your objectives. We place a high emphasis on seeking investments which offer and can deliver strong risk-adjusted returns.

Volatility

Unless you are in a very fortunate position, we will need to engage with financial markets to find the returns you need to meet your goals. Some investors with time on their side can be patient and look beyond short term volatility; but crucially, for those requiring income in retirement, in our view, this means reducing the potential for sharp losses.

“Investing requires us to decide how to position a portfolio for future developments but the future isn’t knowable.”

Howard Marks, Chairman, Oaktree Capital Management

There is no guarantee that the portfolios will achieve a positive return and an investor may not get back the full amount invested.

Time Horizon

We are long-term investors and therefore our portfolios are not intended for an investor who plans to withdraw their capital within three years. Typically, our investment portfolios will be positioned with the aim of meeting objectives over a 5-10 year period or longer.

Cost

We believe regulatory change, competition and technology will lead to lower investment costs and we are both alive to this trend and will seek to exploit it for our clients’ benefit wherever possible and justified. At the same time, we remind ourselves that it is the net investment return after costs and inflation that is key to achieving our clients’ aims.

Passive versus Active

We believe that blind adherence to exclusively active or passive investment is too dogmatic. Whilst we recognise the weight of academic research that supports passive investment we fundamentally believe that active investment management can add value over time. Therefore we will consider the use of both types of approach within a portfolio.

The value of the investment can go down as well as up and you may not get back as much as you put in.