How we invest your money

At Rouse Limited part of our commitment to our clients is that we keep up to date with the latest information and technology in the financial services and investments market.

We also ensure that we ourselves are continually improving our qualifications and knowledge of financial management and investment planning. We use expert tools such as those provided by Towers Watson (TW) to help us understand the movements of the financial markets across the world, and deliver the best performance for your investments.

We aim to manage your money by putting together the best distributed portfolio of assets for your discussed risk profile. We’ll look at all the assets that match your particular risk profile (TW’s data help us to do this). We will put together a selection of different asset classes, some of which will have a high level of volatility, and some a low level. This helps us deliver an optimal investment portfolio.

The theory for this kind of investment portfolio began in 1952, when Harry Markowitz published a paper in the Journal of Finance on Portfolio Theory. In it, he described a match-off of assets across the volatility range, and together he realised they could describe the most efficient investment portfolio for optimum returns. We use this theory of the “efficient frontier” to continually analyse your financial investments. The best return is found on the top line of the curve (you can’t get any higher) and the shaded area under the curve shows the potential risk-reward returns. For every point in the shaded area, there’s at least one portfolio that can be created. Portfolios on the efficient frontier are optimal in that they offer maximal expected return and minimal risk for that particular risk profile.

For more information on our approach to investments, see our page on Investment Approach.