Investment Philosophy

The Redgate investment philosophy is simple: provide the best return after fees and taxes based on the desired level of risk.

The return after fees and taxes is the only return that matters because that is what is actually received. And always focusing on risk management is essential to avoid any unwanted surprises.  Life provides enough surprises that our clients don’t need to risk their hard earned money to create more.

Based on this philosophy, when Redgate manages its clients finances, their investments consistently exhibit the following attributes:

Fee Efficiency

We  do not have control over the financial markets but we do have control over how much it costs us to participate in them. Simply, lower fees mean higher returns, so we are always seeking the best value solutions for our clients.

Tax Efficiency

Like fees, we generally have control over tax. While paying tax is a good thing – it means a profit has been made – paying unnecessary tax is just that, unnecessary. When managing our clients investments, we always consider their entire position to ensure that tax effectiveness is maximised. Simply, higher tax effectiveness means higher returns.

Simplicity over complexity

Innovation in investment markets has simultaneously provided tremendous benefit and unparalleled complexity. We always favour the simple over the complex, so the investment solutions we recommend to our clients are always highly transparent.

High liquidity

High liquidity doesn’t mean lower volatility – the stockmarket being the perfect example – but it can certainly lower the risk of difficulty in accessing capital when required. We favour assets that offer high degrees of liquidity so that if circumstances suddenly change (which they invariably do), the risk that capital is ‘locked up’ is minimised. Where we do recommend illiquid assets such as direct property, we demand a higher return to compensate for the higher associated risk.

Diversification

Whilst we do not advocate diversification for diversifications sake – over diversification is a risk in itself – we do recommend a degree of diversification when constructing portfolios to reduce risk.

Summary

Finally, when it comes to investing, we always remind our clients of the following:

Taking on too much risk may result in your assets being unavailable when they are needed.

Taking on too little risk may result in your assets being insufficient when they are needed.