Clime seeks to deliver strong risk-adjusted total returns. We aim to extract a solid return from the equity market while assuming an appropriate level of risk. A foundation of our investment approach is that investment risk must be appropriately compensated.
We employ an investment framework of
– Capital deployed
– At what risk
– For what likely outcome
Over the long-term we aim to achieve a higher return than the market index with lower volatility.
In managing capital in today’s uncertain environment Clime has two simple guidelines.
Firstly, Be realistic about what the equity market can and should return an investor.
We believe that it is actually more realistic to aim for an absolute return. This is a return that is not compared to a long-term average, but to a true benchmark figure that reflects uncertainty and volatility.
Achievement of this goal over 5, 7 and 10 years is a more realistic and logical goal than merely out performing a share index which can intermittently suffer a significant decline.
Secondly, remain patient and rational. Value can appear at any time and for many reasons. As a fund manager, we hold a weighting in cash because this enables us to buy value as and when it appears. There is no rush. Often those who rush up the hill to stake their claims step over the gems that are slightly hidden.