London CIV (LCIV) Statement of Investment Beliefs
October 2026
Our Investment Beliefs guide how we invest.
1.0 A long-term approach helps us earn better returns net of costs
We believe investing with a long-term perspective allows us to tolerate short-term volatility, benefit from the compounding of returns over time, capitalise on market inefficiencies and reduce the drag of trading costs, delivering better long-term, risk-adjusted returns.
2.0 Defining and managing risk is essential to achieving better risk-adjusted returns
The careful calibration of risk against objectives, together with robust risk management, should lead to better risk-adjusted returns. We define investment risk as the likelihood of failing to meet a long-term objective, including the permanent loss of capital.
A key component of risk management is diversification.
3.0 Liquidity enables investors to meet their liabilities and remain long-term investors through adverse markets
We believe that, within the context of a client portfolio, there should always be sufficient liquidity to meet liabilities and cash-flow requirements, and to withstand adverse market conditions, without being a forced seller. Appropriate liquidity also allows us to act on opportunities when others cannot, and to be rewarded for accepting illiquidity where it is appropriate.
4.0 Strategic asset allocation is the dominant driver of long-term investment outcomes
We believe that strategic asset allocation (how investments are split between different types of asset) is the main driver of long-term results. Rebalancing is an important part of the management of asset allocations given that market prices can deviate from fundamental value.
5.0 Active management can add value net of fees, especially where markets are less efficient
We believe that markets can be inefficient, creating opportunities for skilled managers to deliver returns net of costs, but that such opportunities vary by market and are not universal.
6.0 Providing value for money is critical and it is essential to manage fees and costs
We believe that investment costs have a direct impact on investment returns. Costs should always be judged against the value delivered; the lowest-cost option is not necessarily the best value.
7.0 The research, oversight and stewardship of investments are critical to ensuring they deliver long-term value
We believe that applying rigorous research to strategy and manager selection, together with close, ongoing oversight of managers and mandates and clear accountability for performance, leads to better, more consistent results.
Stewardship is a key component of ongoing oversight. We believe that proactive engagement with investment managers, companies and other investors helps to deliver better outcomes and protect the long-term value of investments.
8.0 Responsible Investment improves outcomes, mitigates risks and creates opportunities
We believe that being a responsible investor is both the right thing to do and makes economic sense. Environmental, social and governance (ESG) issues, including the management of climate change-related risks, people and good governance, are important to the delivery of long-term, sustainable returns.