Principia Investment Consultants works with financial advisors to provide independent and ongoing investment governance oversight.
When I started my consultancy I looked back on my two former careers - mathematician and portfolio manager – and asked the question: What are the principles, or foundations, of investing?
Principia Investment Consultants applies the foundations of finance and investing to asset allocation and portfolio construction.
As a student of mathematics I of course became familiar with Sir Isaac Newton’s famous Principia (or formally Philosophiæ Naturalis Principia Mathematica, which translates to Mathematical Principles of Natural Philosophy). The Principia is considered one of the most important works in the history of science.
I met my great mentor, teacher and friend Professor Colin Pask when I started my PhD at the Department of Applied Mathematics in the Research School of Physical Sciences at the Australian National University. Colin wrote a beautiful book called Magnificent Principia, which brilliantly made the great work of Newton accessible to all.
Principia Mathematica describe the principles, or foundations, of the natural world.
Principia Investment Consultants applies the principles, or foundations, of investing to current economic and financial conditions.
The Principals of Investing.
Asset Allocation is key
Research has demonstrated that the most reliable way of capturing long term investment returns is through asset class selection
Use an evidence-based approach in portfolio construction
Decades of academic research has shown that there is a clear potential to achieve returns better than overall share markets by tilting towards certain investment factors
Diversification is fundamental
Ever since Harry Markowitz unveiled his Modern Portfolio Theory in 1952, diversification has been at the heart of portfolio construction.
Cost-effective implementation is crucial
Research into the capital markets is publicly available. What matters is how asset managers can implement their ideas in real-world investment strategies in a cost-effective manner.
Invest For the Long Term
History shows that the most dependable way to create wealth is to take a long-term approach.