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Investment Management

We build durable portfolios that have long-term predictable outcomes. We design portfolios and strategies to skillfully navigate our clients through changing markets. You will have your own unique investment allocation. In addition, we maintain a recommended buy list of investments so that we can take immediate action in case we need to react quickly to changes in the overall markets or to a specific investment.

We identify your specific goals and then determine the best way to achieve each goal by looking holistically at your entire portfolio. We seek to provide you with returns that are consistent, competitive and in line with your financial objectives. We strive to create portfolios that only take the level of risk needed to meet your goals, and we limit that risk by focusing on broad diversification and a disciplined approach. 

The following components are key to our investment approach:

Fiduciary, Fee-only Compensation

As a fee-based investment manager, we do not take commissions from anyone and we are not paid to direct business to any entity. We receive fees as a percentage of assets under management. This creates a fiduciary relationship with our clients as well as a long-term partnership. Household balances over one million and income specific strategies have lower management fees.

Fee Schedule

Customized Goals-Based Approach

Our initial engagement begins with a conversation regarding your goals. We discuss your time horizon, income needs, risk tolerance, liquidity needs, tax sensitivity and the overall purpose and growth objectives of your funds. We incorporate whether you are in the asset “accumulation” or “distribution” phase of life in making our specific recommendations for you.

Portfolio Assessment

Once we have a clear understanding of your needs, we begin an overall assessment of your current portfolio. We review the existing Investment Policy Statement (if there is one) and asset allocation to see how well they support your objectives. We also conduct an evaluation of all existing investments.

Asset Allocation

We build portfolios from the top down by matching your risk tolerance with the asset allocation that is right for you. Our philosophy is to concentrate our efforts on the total portfolio composition and how assets are allocated throughout the various financial sectors.

Portfolio Diversification

Our top-down asset allocation ensures proper diversification, which is the key to good investment performance. Each portfolio is designed to provide growth consistent with your goals and your comfort level with risk. Portfolios are diversified among:

  • Stocks, which may include large capitalization (“large-cap”), mid-capitalization (mid-cap), and small-capitalization (small-cap) U.S. equities, as well as international and emerging market equities
  • Bonds, which may include high quality and high yield securities, domestic and international, and various lengths of duration and maturities
  • Alternative investments, which may include REITS, private equity, commodities, and structured products.

Strategic Approach

The core of each portfolio is strategically designed for long-term investment, with relatively low volatility and turnover. We will also utilize smaller holdings that tend to be shorter term investments with higher volatility than to complement the core holdings. Together, the strategies seek to deliver consistent performance, diversification, and a portfolio with several non-correlating assets.

Managing Risk

We pay particular attention to managing risk in portfolios. The three main areas that we focus on are volatility, downside risk, and broad exposure. As we re-balance portfolios, consideration is given to how certain financial sectors will affect the overall performance of the portfolio and day-to-day volatility.

Incorporating the Impact of Taxes

We construct portfolios to minimize the impact of taxes. We consider the differences between types of accounts that a client may hold: taxable, tax-deferred retirement vehicles, and trusts. Each of these accounts may have differing tax considerations so it is important that a comprehensive tax strategy exists across all accounts. We will also employ a tax loss harvesting strategy when appropriate.

Best-in-class Manager Selection

In many ways, our manager search and evaluation methods are similar to how a portfolio manager selects securities. It begins with a preliminary screening of information from a vast pool of investment managers. To narrow the field of potential managers in an asset class, we apply quantitative screens that identify managers with superior risk-adjusted performance over rolling three and five-year periods. Then, we embark on an in-depth analysis that combines both quantitative and qualitative research. At this next stage, we are interested in determining how performance was achieved and whether or not it seems repeatable. We pay particular attention to the manager’s investment process, firm stability, management talent, risk-return analysis and management fees.

We Control Investment Costs

We believe the cost to invest is critical in portfolio construction. Portfolios are constructed to represent the asset classes and markets we target at the least expensive cost. Once we find the managers we like, we utilize the most cost-effective method for which they offer their services, whether it be an institutional mutual fund, an exchange-traded fund and/or a separately managed portfolio. Where appropriate, we manage individual client bond allocations in-house. With access to multiple institutional fixed income trading desks, we provide you with superior pricing and breadth, and the ability to create a laddered portfolio to control interest rate risk and to protect cash flows.

Performance Measurement

For performance monitoring purposes, we independently calculate investment performance from each manager. Investment returns are monitored continuously and we prepare a customized performance report that is distributed to you on a quarterly basis.

Monitoring, Meeting, and Reporting

We meet with our clients as frequently as each client requires. Generally, when we are first engaged, meetings (or calls) may be monthly while we go through the asset allocation, manager structure, investment policy development, and manager selection process. Once those decisions have been made and after we assist our clients in their implementation, meetings are typically held quarterly.