follow the market & ignore the forecasters
The image above shows the of The UK FTSE All Share, The UK Value, & The UK Small Cap Market Returns, all dating back to 1956.
Over 6 decades of academic research, carried out by Nobel prize winning Economists, points to small cap stocks outperforming main indices over time. The second element to our investment portfolio’s is to include small cap stocks in each market. We deploy Institutional class funds – investing into the entire small cap markets in the UK, Globally and again in the Emerging world, that have been proven to drive higher returns.
The data show further uplifted returns can be secured by tilting portfolios toward value stocks and we include these stocks as our third element. Our clients portfolios are therefore invested within a model comprising 9 equity funds; the entire UK, Global and Emerging stock markets, plus the tilts to Small Cap and Value within each market. We believe in our model and we have our own money and our families capital invested. Images Kindly provided by Dimensional one of our Investment Partners. We use Dimensional Small Cap and Value funds to invest in those sectors, alongside Vanguard funds for whole market exposure. We also use further real estate and commodity funds provided by iShares to deliver exposure to global property and specialist markets.