Reliable Investment Options For Expats
When it comes to investing your money there are a myriad of different options available. If you’re not particularly financially-minded then the choice can be overwhelming and confusing. AES are the financial investment specialists, and we’re a certified fiduciary so you can be sure that the advice you receive from us is honest and geared towards your best interests.
We offer reliable, tailored advice and the process begins with an AES adviser taking the time to get to know you and find out what makes you tick. This helps us to build up a picture of the investment options that will best suit your needs.
Our investment advice is centered upon what is known as ‘evidence based investing’. Evidence Based Investing makes use of the best evidence currently available for the initial design and implementation of an investment portfolio as well as for subsequent ongoing management of that portfolio.
The concept behind EBI hales from lauded professors and scholars from around the world, including Myron Scholes, Harry Markowitz, Robert C. Merton, William F. Sharpe, Eugene Fama and Merton Miller, all of whom are Nobel Prize laureates in Finance Theory.
Evidence-based investing (EBI) has added significant value to investment portfolios over the years by utilising empirical research, historical data, and proven financial theories to guide investment decisions. This approach stands in contrast to traditional active investing strategies, which often rely on subjective assessments, market timing, and stock-picking. Some of the key ways EBI has added value to investment portfolios include:
- Improved Risk-Adjusted Returns: By adhering to principles derived from empirical research, EBI helps investors build portfolios that optimize risk-adjusted returns. This means that investors can potentially achieve better returns for a given level of risk, or minimise risk while still achieving their desired returns.
- Enhanced Diversification: EBI emphasises the importance of diversification, both within and across asset classes, to manage risk and reduce the impact of individual security underperformance. This approach helps to spread risk and reduce the likelihood of significant losses in any single investment, leading to more stable returns over time.
- Lower Costs: Evidence-based investing often favors low-cost index funds or exchange-traded funds (ETFs) over actively managed funds. This results in lower fees, which can have a substantial impact on long-term investment performance. Lower costs also help mitigate the impact of compound interest on fees over time, further enhancing portfolio returns.
- Disciplined Approach: EBI promotes a disciplined, long-term investment approach, discouraging frequent trading and market timing. By focusing on long-term performance and ignoring short-term market fluctuations, investors can reduce transaction costs and taxes, ultimately contributing to better investment outcomes.
- Reduced Behavioral Bias: EBI helps investors overcome common behavioral biases, such as overconfidence, loss aversion, and herd mentality, by relying on objective, data-driven investment strategies. This reduces the likelihood of making emotionally-driven investment decisions that can negatively impact portfolio performance.
- Adherence to Proven Financial Theories: EBI incorporates insights from well-established financial theories, such as Modern Portfolio Theory and the Efficient Market Hypothesis. By adhering to these proven theories, investors can build portfolios that are more likely to perform well over the long term, as they are grounded in sound financial principles.
In summary, evidence-based investing has added value to investment portfolios over the years by promoting a disciplined, data-driven, and cost-effective approach to investing. This has led to improved risk-adjusted returns, enhanced diversification, reduced costs, and a greater likelihood of achieving long-term investment goals. By focusing on empirical evidence and proven financial theories, EBI helps investors make more informed decisions and build more resilient portfolios. TLDR? EBI gives you the potential for generating a better return, with less risk.