City thinking, local knowledge

How does Questa stay on top of the investment market?

By Questa Chartered

Between Brexit uncertainty, political toings and froings and the trade wars escalating across the globe, it’s safe to say that 2019 has had its fair share of market changing events. However, here at Questa we have procedures in place to help to deal with these shifts, and we want to shine a light on some of the strategies we use to stay on the cutting edge of the investment market.

Modern Portfolio Theory 

One of the ways we do so is through our adherence to Modern Portfolio Theory, constructing optimised portfolios based on a level of market risk. Utilising the theory, we aim to create efficient portfolios that offer the maximum possible return in accordance with the client’s attitude towards risk. This helps us to stay flexible and make realistic investments in line with our clients’ individual goals. 

Diversified Portfolios

We also make sure that all portfolios are as diverse as they can be and contain a multitude of different assets. We’ve often found, even in times of negativity, that certain assets do still perform well, hence why it’s so vital to diversify portfolios. Furthermore, despite a degree of negativity in certain markets, we have been fortunate enough to see positive growth, and as the years have passed by, increasingly positive returns on investment. 

Monitoring Portfolios

We have a strict policy of regularly monitoring portfolios and then adapting them to any changes in the market. We will often rebalance the assets within a portfolio if we recognise a change we can take advantage of, or to mitigate any shortfalls. That’s when our investment committee comes in. 

Regular Investment Committee Meetings

The investment committee meets monthly to make sure that we’re investing strategically and appropriately. Sometimes the committee will meet 3 to 4 times a month, depending on whether there are any large media events taking place. This, combined with our use of external analyst tools, allows us to adapt our investments and stay on top of the market.

Consultant and Fund Manager Meetings

We also make sure to meet with consultants and fund managers when possible. We’ve found these collaborations invaluable when it comes to making sound investment choices and deciding on the optimal recommendations for our clients.

Investment length  

Another guard we have against market negativity is the length of time that our clients invest for. We’ve found that investing for the medium to long-term in one of our heavily diversified portfolios can be a good tactic when it comes to achieving positive growth, especially in the five year plus investment period.

In summary

Questa has always endeavored to be safe pair of hands for client money. That said, we make sure to get the best returns possible while taking the appropriate level of risk. 

We hope that you’ve enjoyed this little bit of insight into the inner workings of Questa and if you have any questions about what we’ve mentioned above, then feel free to get in contact. 

Latest News

Later life lending is a growing trend

The later life lending market has been predicted to double in size over the next decade, surpassing a total market value of over £500bn – a staggering figure,…

Putting a number on the value of financial advice

People often think that financial planning is about being sold products and that it’s an entirely transactional experience. This couldn’t be further from the truth. The intangible mental…

February Market Commentary

China grabbed the headlines again in January, but this time not for trade. On 31st December, the Chinese authorities had notified the World Health Organisation of an outbreak of pneumonia…