One of our four core values and axioms for decision-making is long-term thinking, this means in everything we do, we take a step back and look at the decades gone by and see how they make affect future decades.
However, it’s important to review the past quarter and what the coming twelve months may have in store. We do this in order to determine how well our decisions are playing out.
Over the previous quarter, across all risk-rated model portfolios and portfolio ranges the Daintree Wealth Management model portfolio outperformed the relevant MSCI benchmark.
An example of how our long-term thinking applies to our investment philosophy, at the beginning of the year we identified a long-term trend of:
Inflation rising in the long-term, which would lead to future interest rate rises meaning long-dated bond yields would rise and bond prices fall.
This was a multiple-decade trend, which we decided to prepare for now, as if done properly there would be no additional downside with the possibility of significant upside.
This led to us investing in global inflation-linked bond holdings and global short-dated bond holdings, over the past quarter, this has led to increased returns of around 2% against the Alternatives benchmark.
This long-term approach to our investment philosophy has led to our portfolios providing a superior risk-adjusted return over the past three years than their comparable MSCI benchmark.
