At Forwood Planning, we believe that having a clear and disciplined investment philosophy is essential to helping our clients achieve their long-term financial goals. An investment philosophy is a set of guiding principles that shape how we make investment decisions on behalf of our clients. It provides a framework for evaluating investment opportunities, managing risk, and maximising returns over the long term. Our investment philosophy is grounded in a commitment to evidence-based investing, diversification, risk management, and tax-aware investing. By staying true to these principles and tailoring our investment strategy to the unique needs of each client, we believe we can help our clients achieve financial security and peace of mind.

Our investment philosophy is built on the following principles:

  1. Goals-based investing: Our investment strategy is tailored to each client’s unique financial goals and risk tolerance. We work closely with clients to understand their objectives, time horizons, and liquidity needs, and develop a customised investment plan that aligns with their goals.
  2. Diversification: We believe that a well-diversified portfolio can help to reduce risk and enhance returns over the long term. Our investment approach emphasises diversification across asset classes, sectors, and geographies to provide broad exposure to the global markets.
  3. Evidence-based investing: Our investment decisions are grounded in rigorous research and data analysis. We use a variety of investment tools and strategies, including low-cost index funds, ETFs, and dynamic asset allocation, to build diversified portfolios that are designed to meet the long-term needs of our clients.
  4. Dynamic asset allocation: We believe that dynamically adjusting asset allocation based on the relative value of the asset classes can help to maximise returns and minimise risk. We use sophisticated modelling techniques to identify changes in the risk and return profiles of various asset classes and adjust our clients’ portfolios accordingly.
  5. Tax-aware investing: We recognise the importance of tax efficiency and strive to maximise our clients’ after-tax returns by using tax-aware investment strategies. We consider the tax consequences of every investment decision we make, and use strategies such as tax-loss harvesting and other tax-management techniques to minimise our clients’ tax liabilities.
  6. Risk management: We recognise that markets are inherently unpredictable and that risk management is essential to protecting our clients’ capital over the long term. Our investment strategy includes a range of risk-management techniques, including diversification, asset allocation, and regular portfolio rebalancing.
  7. Low-cost investing: We believe that minimising costs is a key component of long-term investment success. We use low-cost investment vehicles such as index funds and ETFs whenever possible, and are committed to minimising trading costs and other expenses associated with managing our clients’ portfolios.
  8. Regular review and reporting: We regularly review our clients’ portfolios and provide detailed reports on performance, fees, and other important metrics. We work closely with clients to ensure that their investment strategy remains aligned with their goals and that any changes to their financial situation are reflected in their investment plan. By using the word ‘review,’ we emphasise that we make informed decisions about the portfolio at specific points in time rather than constantly observing and checking its progress.

Overall, our investment philosophy is centred around the needs of our clients and a disciplined, evidence-based approach to investing. We believe that by focusing on risk management, diversification, dynamic asset allocation, and tax-aware investing, we can help our clients achieve their long-term financial goals while maximising after-tax returns.