Our investment philosophy is rooted in timeless academic research, evaluating how different asset classes behave within various market cycles. Our investment management style can be summed up in two words: Goals-Based. There are several components that help drive our investment decisions which go into more detail below. Our passion is to have the heart of a teacher and make things understandable to our clients in simple, clear ways.
Importance of Asset Allocation*
“Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land”. This wisdom from Solomon speaks to the importance of diversification. Stocks, Bonds, Cash, Real Estate and Alternatives are a few ways to accumulate wealth over time. Each of these asset classes have their own level of risk associated with them. Having the right asset allocation relevant to where one is on their investment journey, is the key to long-term investment success.
Through our Goals-Based approach, an appropriate asset allocation can be determined. Once the asset allocation is determined, our due diligence provides a filter enabling us to discover the best in class fund managers, index funds & ETF’s available to investors. A few factors that come into consideration are: Fund size, strategy history, manager tenure, risk/return characteristics and expenses. The goal of our due diligence and screening process is to put together an All-Star team of specific investment strategies that correspond with the appropriate piece of the asset allocation.
Our goal is to minimize fees, expenses and taxes to help strengthen the probability for client’s to achieve their desired outcomes.
Monitor and Rebalance**
The daily volatility of the markets does not drive our investment decisions. We do, however, recognize the ongoing changes in the global marketplace and make adjustments as warranted. Ultimately, a client’s definition of risk will change and adapt over time as they transition into a new stage of their journey. Furthermore, the investment strategies and portfolio composition decisions aimed at mitigating risk must also change and adapt. We are committed to our due diligence monitoring our client portfolios in order to help them achieve their desired outcomes.
* There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values.
** Please note that rebalancing investments may cause investors to incur transaction costs and, when rebalancing a non-retirement account, taxable events will be created that may increase your tax liability. Rebalancing a portfolio cannot assure a profit or protect against a loss in any given market environment.