Philosophies
Financial Planning
“If I had only one hour to save the world, I would spend fifty-five minutes defining the problem, and only five minutes finding the solution.” – Albert Einstein
Our process for financial planning is broken down into two distinct disciplines, namely:
Information gathering; and
Recommendation delivery
Turns out, Einstein was a pretty smart guy 😉 He recognized that the quality of the solution is irrevocably linked to the quality of the problem’s understanding.
At Candour, we adopt this concept wholeheartedly.
We place immense importance on gathering key, relevant information and a thorough understanding of challenges and potential threats – long before we assume to know the answers.
This comprehensive groundwork is fundamental to the success of the solution. And then, once all this data is assessed and analysed, we ensure that the recommendation(s) is delivered in a clear and understandable format.
We don’t try to bamboozle our clients with fancy jargon and intellectual vanity. Instead, we strive to truly empower our clients by providing information in a way that feels non-intimidating and inclusive.
Investment Philosophy
Our approach to investments is built on four fundamental principles – each of these playing an important role in what we do, how we do it and who best to do it with.
These philosophies are the key game plan behind the success of Candour Investments. They are as follows:
1. It’s a Three-Way Team
There’s you, the client or Captain
Team Member 1 – the financial advisor; and
Team Member 2 – the investment manager.
Like any winning team, it’s critical that each member understands their role and how it influences the game at large. For results to be optimised, communication needs to be clear, non-defensive and absolutely honest. Each team member needs to know their role and strategically work together to achieve the desired result. First, the client needs to be able to formulate and manage the cost of their life goals; Then, the financial advisor needs to understand the client’s vision and provide a dynamic administrative and tax platform from which to manage the goals; And finally, the investment manager, who drives those life goals forward, given an understanding of historical performance and correlations of investable asset classes.
2. A clear investment objective is vital from the outset
Before structuring a portfolio, a clear and realistic investment return needs to be agreed, as well as the tolerance of risk. That’s why, from the outset, the investment manager is looped into the discussions. That role is central in setting an achievable investment objective and likewise, the reporting on factors that impact the investment objective over time.
3. History, while not the only point, is a good starting point.
Candour believes that, before approaching the future, it’s worth casting a professional eye over history. A thorough review of historical asset class returns in varying economic environments is analysed and considered. It should be remembered that, whilst the future is somewhat unknown, the past is cast in stone. We use the factual return and risk results of yesterday to help us formulate the strategic asset allocations driving tomorrows.
4. We leave arrogance at the door.
At Candour, we give due respect to the idea that a collection of minds should not be dismissed without careful consideration hence we believe the “Efficient Market Hypothesis” is alive and well. We don’t let over-confidence easily undermine the power of the combined minds of all market participants.
