Investment Committee

The Investment Committee at Lindley Financial Management

Successful investment is critical to your future financial wellbeing, but it is a field which presents a unique problem, future performance is unpredictable.

A widely used method of assessing the quality of an investment house is to look at their previous performance; however this can only give you part of the picture. Some of the best managers will occasionally underperform the market over a short period and equally the worst managers can sometimes achieve impressive performance. This happened during the dot-com bubble when some managers looked good for a while. Clearly past performance can provide no guarantee of future returns.

Also consider that the manager who performed successfully in the past may no longer manage the fund, having moved onto another fund or left the company. It may also be that a management style which had historically worked so well may not be right for current or future market conditions.

As a result, when you choose someone to manage your money, no matter how successful they have been in the past, how can you be sure that you have made the right choice and that it will continue to be the right choice in future years?

Crucially, what can you do to monitor the manager you have chosen and to ensure that they are continuing to do a good job for you? This is where our Investment Committee comes in.

Lindley Financial Management’s Investment Committee

The Investment Committee at Lindley Financial Management is made up of three well qualified investment professionals, headed up by Colin Eyre, a retired fund manger himself.

Recognising that no single investment house has a monopoly of investment expertise, we remain staunchly independent in offering a number of investment solutions to our clients.

This has a number of advantages:

  • It gives us the freedom to select first-class managers from the global investment market
  • It enables us to change any of the managers/funds at short notice if we have lost confidence in them
  • It offers our clients a real opportunity to diversify their investments by spreading their money across funds managed by different managers with different styles and strategies

The Investment Committee ensures that the funds remain on track and are delivering consistent returns in line with our expectations. The committee closely monitors the performance of all of the fund managers/investment houses recommended to our clients

Monitoring includes direct presentations by the particular individuals who manage the funds at the regular meetings of the Investment Committee, giving members the opportunity to question the managers closely, as well as ongoing monitoring of each portfolio. To enable the Committee to fulfil its objectives it meets a minimum of once per month, although this can increase depending on market conditions.

At each meeting the Committee will make crucial decisions about the best way forward. It has four options:

  • Leave the fund/portfolio unchanged as the Committee retains confidence in the way clients’ funds are being managed.
  • Retain the investment company but change the manager – the departure of an individual manager may cause this to happen.
  • Change the investment company and manager as the Committee no longer has confidence in their ability to manage our clients’ monies.
  • Introduce a new investment fund or strategy to give our clients greater opportunity or to improve performance prospects.

Lindley Financial Management is able to offer our clients a diversified investment proposition where overall risk control is achieved by the careful selection and combination of fund managers pursuing different investment disciplines across their respective asset classes. This strategy creates our investment proposition that offers realistic scope to produce added value over time.