Our approach emphasises equities because we believe that this is where the best long term returns will continue to be obtained. The real return on UK equities in the twentieth century was 5.5%. The equivalent return from gilt-edged over the same period was 1.1% per annum (Source: Barclays Equity Gilt Study 2001). We do, however, invest in bonds to achieve diversification and balance. When securities markets are expensive and vulnerable we are not afraid to build up significant cash balances.

When searching for quality companies in which to invest we favour the old fashioned virtues of good management, strong balance sheets and organic growth. We use judgement and not complex computer models to analyse markets and companies.

We bring experience, judgement and flair to our investment decision making. We are truly independent and are interested solely in optimising long term returns for our clients. Most large investment management houses claim to be independent while they are owned or controlled by institutions with other businesses which may conflict.

In searching out good quality companies we call on research departments of major City and provincial brokers. However, it is equally important to us to maintain direct contact with a wide range of companies through meetings and visits. Our success flows from our ability to get on with people we trust both in the City and industry.

In UK equity portfolios we reduce risk by ensuring there is no undue concentration in any industrial area. For most clients we agree a maximum proportion in medium-sized and smaller companies and a minimum in FTSE to reduce the risk of underperforming the FTSE All Share Index.

The strength and diversity of the UK economy depends heavily on its overseas trade and interests. Any UK equity portfolio therefore has a significant overseas element. The breaking down of trade barriers in Europe and elsewhere, regular economic summits, the single European currency and the increasing convergence of the world stock and bond markets mean that the benefits of geographical diversification of investment are not what they once were. We expect long term returns from equity markets in developed economies to be broadly similar. Where appropriate we construct European Portfolios for our clients.

Our two largest charity clients are managed to strict ethical criteria. We keep up with the latest thinking in this changing and growing area through membership of EIRIS (the Ethical Investment Research Service).

We believe our philosophy is appropriate for company and personal pension funds, charities, trusts and private clients. We believe that smaller funds do not need to lose their identity within a large managed fund. These funds will benefit not only from our experience, philosophy and performance, but also from the personal service which we provide.