Investment Philosophy

Understanding our client’s financial objectives and providing access to diversified portfolios in keeping with their investor risk profile, enables us to assist our clients to achieve constant investment returns and capture the financial performance of the capital markets.

We are asset-allocators not stock-pickers. Our client portfolios are built on globally diversified blends of index funds. Our investment philosophy is the key to our clients’ investment success.

Our investment philosophy is based on five fundamental principles that are based on derived economic science and detailed academic research, including research over decades that has been recognised and awarded with the Nobel Prize in Economic Sciences.




  1. Financial markets are efficient

Prices in free markets fully incorporate available information, and prices change to reflect any unexpected new information so that the current price is the best estimate of a fair price.

  1. Risk and return are inseparable

While there is no such thing as a return without risk, not all risks are rewarded. Long-term historical risk and return data inform our investment selection process, and Dimensional’s Index Portfolios seek to capture the risk factors that have been shown to most appropriately compensate investors for the risks taken.

These risk factors include market size; value and profitability for equity; and term and; default for fixed income.

  1. Diversification is essential

Diversification both within and among asset classes allows investors to effectively capture the returns offered by the financial markets, in accordance with their risk capacity.

  1. Structure explains performance

The expected return of a diversified portfolio is determined by its exposure to the compensated risk factors. The high costs and risks of active management are unnecessary and potentially harmful to an investor’s long-term outlook.

Advisor Advantage

There are distinct and quantifiable benefits to enlisting the services of a passively oriented advisor. These benefits include disciplined rebalancing; tax-loss harvesting; asset allocation; and glide path.

At Locumsgroup we add value by adhering to the principles of controlling costs, maintaining discipline, and tax awareness.


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