We really try to think like business owners. This means we try to judge the performance of a company or an investment by the underlying business progress rather than the shorter-term movement in market prices”
Our objective is to preserve and grow the wealth of our clients over multiple generations. Through our investments, we aspire to preserve both the wealth of future generations and the environment and society they will inherit.
We set out to preserve our clients' wealth by focusing on sustainable long-term growth. When investing our clients' money, alongside our own, we are guided by the principles below.
A long-term investment horizon allows us to cut through short-term noise and focus on what really matters. We can act and think like business owners and build active partnerships with the companies and funds that we invest in. We believe this creates real value for our clients.
Even modest levels of inflation erode the real value of capital over time. Our investment objective is to outpace inflation and generate sustained returns. We do this by finding high quality companies with pricing power and high barriers to entry.
Sustainability factors cannot be separated from economic factors as they are inherently part of the long-term risks and opportunities of any company. Sustainability analysis is explicitly integrated into our investment process. As long-term investors, we want to own high-quality businesses that have resilient business models and sustainable business practices.
We seek assets that provide genuine protection in periods of market stress. This allows us to be on the front foot and smooths the journey for our clients. Our in-depth research on companies means that we invest with conviction while minimising the risk of permanent capital loss. Taken together, we build sensibly diversified portfolios, combining investments in high-quality companies with true diversifiers.
At Rothschild & Co, sustainability runs through our investment philosophy, our approach to entrepreneurship and how we act as an organisation. Visit our sustainability hub to find our more about our approach to sustainability.
Investing for the long term
We've always invested in long-term, sustainable business. To discover how environmental, social and governance issues are embedded in our approach to wealth management, please review our Sustainability and Stewardship Report for 2023.
Preserving and growing your wealth means investing sustainably over time. We are committed to investing responsibly on behalf of our clients and do so by following our Sustainability and Stewardship Policy.
Understanding our APPROACH
We’re proud of our long-term approach to investing, please read the articles below to learn more.
Sustainability has always been a fundamental investment issue. Here we outline the Rothschild & Co approach to sustainability in the investment process and the factors that can affect a company's intrinsic value and thus returns.
All of us demonstrate bias, even if it’s often detrimental to our lives. This is especially the case with investing, where it can be too easy to make poor decisions because of bias. This piece looks at the most common types of bias and how to minimise the negative impact.
Inflation is the increase in the general price of goods and services over time. Persistently high inflation can have a devastating impact on your wealth as it effectively erodes the real value of your money.
As the cost of living rises, the real value of your savings and investments can diminish. To preserve wealth, it is important to consider investments that can potentially outpace inflation, such as equities, property and inflation-protected bonds.
Bonds are effectively loans made to governments or companies which are paid back with interest. They are typically used to fund projects or manage debt.
They offer a regular and stable income to investors and are often inflation-linked, meaning that returns increase during inflationary periods.
Equity refers to ownership of a business or holding shares in a company. Those who own equity are called shareholders and have a claim on the company's assets and earnings. Equities can be held by individuals or other entities, such as investment funds.
Shareholders generally have the right to participate in company decisions and receive a share of profits, through dividends or capital appreciation. Owning equity can be a successful investment strategy, although there are risks associated with the performance and volatility of the company.
Quarterly Letter
Adapting to change isn't easy. It requires a willingness to experiment, get things wrong and reflect honestly about how to improve. In this Quarterly Letter, we explore the importance of experimentation, and how looking back helps us to get better at looking forward.
Strategy Blog
Spreading conflict in the Middle East is alarming, particularly when viewed alongside other ongoing geopolitical challenges. While there are no infallible guides to how global markets will respond, in this blog we discuss some of the potential economic consequences.
Strategy Blog
It seems enough is enough for Beijing’s policymakers. After a series of half measures in recent years, the government and central bank have announced with a multi-pronged attempt to stimulate the market and revive the sluggish economy. We examine the outlook for China.
