REDGATE WEALTH

tailored solutions for Your financial success

Investment philosophy

Typically, an investor’s assets are allocated across various asset classes. Although the composition of investors’ portfolios can vary significantly, the general allocation often includes: cash, illiquid investments such as real estate etc., and finally, investments in more liquid securities. In our approach, we consider the investor’s risk profile and objectives, focusing on increasing the proportion of investments in liquid securities within the overall asset mix to better diversify risks and achieve reasonable returns. In our view, this type of portfolio constitutes the core, while other investments are satellites (such as investments in unlisted Baltic bonds, Baltic and other (alternative) fund units, private loans, start-up investments, etc.).

The core

The core is the most significant part of financial investments, serving as the foundation for the entire investment strategy. The investment horizon for the core can essentially be perpetual because the core’s tactical allocation is continuously updated. Moreover, the core is always open to investments, as it reflects our up-to-date understanding of the assets expected to perform the best and their respective allocations. The core should constitute a larger portion of the investments.

What does the core consist of?

The core is a global collection of highly liquid assets, with the allocation between assets depending on the economic cycle and our current view of financial markets. The core primarily consists of various exchange-traded funds (ETFs).

Satellites

In addition to providing discretionary portfolio management services, we also create new opportunities for more active investors looking to diversify their investment portfolios. Satellites are smaller allocations characterised by higher risk compared to the core, and in certain cases, they may also be less liquid than the core. These investments are typically with a more temporary nature and allocated in smaller amounts to take advantage of specific opportunities that arise in the markets.

Through us, investors can invest their funds to both publicly traded and non-publicly traded securities in various regions, while conveniently holding their transaction-related funds and securities in their personal Redgate accounts.

What are the satellites?

Satellites can include individual company stocks and bonds, sector and thematic funds, or alternative investments such as fund units, unlisted bonds, and private loans.

The core and satellites approach allows investors to combine elements with relatively well-defined growth potential while taking on more focused risks.

The core and satellites is an investment approach that allows an investor to combine elements with relatively clearly defined growth potential and take on more focused risks.

  Important

We do not provide personalised investment recommendations for satellites. For satellites, we leave risk assessment and decision-making to the investors themselves.

ESG criteria

At Redgate Wealth, we understand that every investor is unique and their approaches to investing and goal setting vary.

We believe in providing tailored solutions that align with our clients’ individual preferences and objectives. With that in mind, while our core investment strategies are not designed with particular environmental, social and governance (ESG) considerations in mind, we are committed to be flexible and adapt to our clients’ specific preferences in the future, if such demand arises. At the moment, we are of an opinion that incorporating sustainability criteria into investment process is likely to result in sacrifices in financial returns without gaining much, if anything, in terms of actually furthering sustainability. We are monitoring the market developments and are willing to adjust our investment process once sustainability-linked processes are globally standardised and the risk of falling into the greenwashing trap is minimised.

Thus, we do not currently impose mandatory ESG screening as a step in our investment process and we do not consider adverse impacts of our investment decisions on sustainability factors. Our approach is to build core portfolios that prioritise clients’ financial objectives, with respect to return, volatility, and liquidity. In the satellites’ part of the portfolio, we are committed to respect every client’s individual investment preferences, including the sustainability criteria.

Contact us

Helen Hanttu

Head of sales

helen.hanttu@redgategroup.eu
+372 5660 2555

Mikk Rässa

Junior client relationship manager

mikk.rassa@redgategroup.eu
+372 5373 2060

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