Today's investment market is barely recognizable when measured against that of only a decade ago. A seemingly unending array of new methods by which markets can be accessed; innumerable products and countless asset classes characterize an investment backdrop that often serves .....
We have been enabling individuals to take control of their investments and finances since 2006 and our team of Personal Investment Advisers, together with the dedicated client administration personnel that support them, adhere to the stringent standards .....
Why Cardinal Trading?
Whilst the management of money on a day-to-day basis in terms of paying bills or servicing a mortgage does not present the majority of people with any difficulty, when it comes to accumulating and preserving capital for the long-term, many make the kind of fundamental mistakes that can easily be avoided with careful and prudent guidance from those with the expertise to succeed. Nevertheless, with the investment management market awash with practitioners, just how does one decide whom to trust with their long-term financial well-being?
Although the decision to entrust your investment management requirements to Cardinal Trading enables you to leverage the expertise of some of the finest minds in global markets investment, it also means that you stand to benefit from the quality of service that was once reserved for clients of private banking concerns.
Without exception, each Cardinal Trading client is treated – first and foremost – as an individual with his or her own outlook, aspirations and goals. If you'd rather maintain a hands-on approach with your investments, our service is flexible and adaptable enough to accommodate your wishes. On the other hand, if you would rather allow our managers to handle the day-to-day running of your portfolio, again, we can arrange for this to be done through a discretionary management agreement.
Cardinal Trading clients can expect regular meetings or, if more convenient, tele-conferences with their Personal Investment Adviser to review and discuss the performance of their portfolio and can establish contact with him/her at short notice. Cardinal Trading relishes the opportunity to meet with our clients regularly because to us, getting together is also an opportunity to talk through any changes our clients' personal circumstances that could affect their plans for their money.
Client satisfaction is of the utmost importance to Cardinal Trading – and central to our continued success. In our view, the management of your investments does not end with the signing of forms and the handover of product brochures and copies.
We continually monitor all components of our clients' portfolios and seek to achieve the desired balance between profit and protection in line with the guidelines laid down in their individual risk profile.
In each and every instance, we endeavor to devise an individual portfolio that protects assets and maximizes returns.
When Cardinal Trading is managing your portfolio, our advisors are responsible for purchasing, selling, and monitoring your investments. It is our role to coordinate the setup of your account, build your investment policies and, of course oversee those investments. We rebalance your accounts and help you prepare for any liquidation requirements.
The over-riding aim is to bring cost-effective, higher echelon, disciplined investment management to all our clients.
Protection and Profit
Our commitment to providing our clients with access to high grade financial products is a cornerstone of the foundations upon which our reputation has been constructed. This should not be misconstrued as meaning that investments we recommend are completely free from risk since ALL asset classes carry the potential for financial loss.
It is the way in which we at Cardinal Trading mitigate this risk issue that marks us out clearly from the majority of our rivals. By diversifying between various asset classes, we can meaningfully minimize capital depletion events.
In order to ensure your portfolio remains on target, it is necessary to fine-tune it regularly to make sure it conforms to the asset allocation parameters agreed at the outset. Put simply, fine-tuning is when we dispose of an asset class that has appreciated in value and use the proceeds to acquire a greater quantity of an asset class within the portfolio that may have performed less well than expected.
Some investors find this approach bemusing since most would instinctively sell what has failed to perform but, in our extensive experience, this strategy inevitably leads into a buy high, sell low outlook.
Asset Allocation/Asset Diversification
Many investment advisers regard asset allocation and diversification as the two foundation stones of successful investing. Here at Cardinal Trading, we are proponents of "Modern Portfolio Theory".
The idea behind "Modern Portfolio Theory" is the minimization of investment risk within a portfolio. There is a tradeoff insofar as although risk is lowered, returns can also be adversely affected. (low risk can mean lower returns whilst high risk can mean higher returns but a potential for higher losses).
Diversification is accomplished by increasing the number of securities within a portfolio. A simple example: if a portfolio consisted of only 2 securities, each would have a 50% bearing upon the portfolio's performance. If, however, a portfolio consists of 5 securities, each would have a 20% weighting on the performance and so on.
Asset allocation works in tandem with diversification. In a nutshell, asset allocation is simply the distribution of your investments across asset classes or across sectors within an asset class. For example, if you bought British Petroleum and Royal Dutch Shell, your portfolio would lack diversification because your asset allocation would be concentrated in two companies in the energy sector. However, if you bought British Petroleum and, say, Vodafone, your portfolio would be more diversified because your assets are allocated into two different industries.
Asset allocation in a wider sense diversifies your portfolio not just among different investments, but among different investment classes like stocks, fixed income alternatives such as bonds, cash equivalents, commodities and other tangible assets. Although asset allocation does not eliminate risk entirely, it can significantly decrease your exposure to extreme highs and lows in performance of the assets or investments within your portfolio.