Campbell Munro Ltd

Approach to Investment


For most investors, an acceptance of risk when investing is necessary to achieve their vision of an affluent future. Campbell Munro’s house view is that the additional volatility of equity investing is an acceptable risk to take in order to generate the best long-term returns. Our approach to lessening this risk is to only invest monies not required for items of capital expenditure for the next five years.  For those monies available for investing, we construct portfolios based on the following four principles: -

Income – Stock market/asset-backed investing generates two types of return: capital growth in the form of share price increases, and income in the form of dividends.  The volatility associated with share prices has deterred many investors from enjoying the greater stability of dividend income. In our opinion this is limiting as in most cases the capital passes to the next generation and its ultimate value of less importance than the immediate income it can provide.  Dividend income has a long track record of stability and growth in excess of inflation.  

It is for these reasons that our investment process has income investing at its heart.  The key advantage of favouring income paying investments is that the current income available to you is tangible and paid to your regularly.  This income can be used to support your immediate cash-flow requirements or deferred to a later point through the reinvestment into further income generating assets. Clients not drawing income can enjoy the compounding effects of income reinvestment.

Capital growth – Over the long-term, inflation creates a need to identify investments that can achieve out-performance to counter the impact of rising living expenses. We maintain an allocation to capital growth to provide the necessary bolster for the long term. Within this allocation, there is a focus on areas of great innovation. It is our belief that the world is entering a pivotal period of rapid development in technology, healthcare, and alternative energy sources and for those companies at the forefront of this considerable capital appreciation will be created.

Diversification – We build portfolios with an unconstrained approach to investing, implementing a Global allocation to select the very best investments regardless of location. This results in a portfolio that spans several regions and asset classes. With the US leading the world in free thinkers, which is a commonality for exceptional companies, there will inevitably be a high weighting in this region. An allocation to funds with a focus on capital preservation furthers diversification in portfolios.

Competitive Costs – To optimise the returns to you, low costs can have a dramatic benefit, which we implement primarily via index trackers. These are highly diversified vehicles for tracking the performance of global stock markets with the sole purpose of matching the returns at minimal cost. Advances in technology have made index investing both incredibly cheap to replicate and increasingly difficult to better in developed equity markets. Incurring the higher costs of fund managers is considered in areas where added value has been consistently proven. This can be in the form of outstanding returns or uncorrelated investment areas.


Bespoke Portfolio Service

Our Bespoke Portfolio service is designed for clients who require individually tailored portfolios. We are experts in investment and wealth management and all initial advice offered to our clients is based on a full assessment of personal circumstances. We consider the investment objectives and risk profile of every client on an individual basis before providing any direction or advice.

Bespoke Portfolios are perfect for those wishing to benefit from a portfolio suited to their personal preferences and needs. Bespoke Portfolios offer access to a wider range of diversification including Investment Trusts where superior returns are evidenced by historical data.

Features of Bespoke Portfolios

  • A diverse selection of funds derived from the latest ideas of the Investment Committee
  • Exposure to best-in-class Investment Trusts to benefit from superior returns
  • Regular portfolio tax planning to utilise annual tax-free investment allowances
  • Highly diversified portfolios, tailored to suit individual income and risk requirements