Carrington Asset Management Ltd specifically tailors each portfolio to the unique and individual situation, needs, and goals of each client. We carefully listen to you to understand your aims and ambitions, plans for the future, attitude to risk, and current and anticipated needs.
This information provides a foundation for building an investment strategy that is uniquely focused on you. It will help us determine the correct asset allocation to protect your assets while achieving your goals and mitigating risk. For example, do you want income or growth? Do you plan to retire in the next five years or have an investment horizon of decades? Do you accept taking risks, or are you more cautious? These and other factors help us determine the right balance of investments to create the right portfolio for you.
Carrington Asset Management Ltd conducts thorough research and analysis before recommending any investment. Using top-down and bottom-up analysis of the company, its management, its competitors, and the sector and industry in which they work, Carrington Asset Management Ltd can gain an in-depth knowledge of what the company is all about.
After completing the discovery process and understanding your needs and objectives, we select the investments that we believe will bring you closer to achieving your goals within acceptable risk tolerances.
Your portfolio will be regularly reviewed and adjusted to take any changed circumstances into account. In addition, the investments in your portfolio are actively reviewed to ensure they still offer the potential to grow that they had when they were bought and assessed to see if better opportunities now exist elsewhere.
Fixed income investments are added to portfolios to generate income and balance the risk of growth-orientated securities. Keeping government and corporate bonds until they mature will generate a dependable income stream and keep transaction costs low. Bonds are bought according to the timescale of your intended period of investment and prevailing interest rates. Shorter-dated bonds are bought during rising interest rates and are reinvested into higher-yielding bonds as and when they mature. Longer-dated bonds are bought in times of falling interest rates to secure higher yields for a more extended period.
Primarily investing in direct equities gives us the control and ability to cherry-pick the investments we want to make to achieve the value growth we want to see. For those with more extensive portfolios, higher risk profiles, and institutional investors, we may incorporate other assets such as alternative investments, IPOs, and other investments that offer opportunities for exceptional growth. Our direct equity selection process looks for investments we can hold for a longer time and focuses on capital growth. We consider large, mid, and small-cap companies and diversify portfolios by sector, industry, and geography to reduce risks.
Our top-down approach identifies different economic and financial environments to identify new areas of opportunity, emerging trends, and places to avoid.
A balanced portfolio utilizes a mix of growth and income investments to create a well-diversified portfolio that generates income if needed or is lower risk, perhaps due to the client approaching retirement while still having some opportunity to increase value and reduce potential volatility. Balanced investment strategies are in the middle of the risk-reward range. Cautious investors tend to opt for capital preservation strategies, and more aggressive investors tend to opt more for growth strategies.