INVEST WITH A PURPOSE
Our approach to investing is based on the belief that investment goals are best met by coordinating the fundamentals of investing with established personal objectives.
ACTIVE VS PASSIVE MANAGEMENT
In recommending an investment strategy we are mindful of the ongoing debate over the Efficient Market Theory: the belief that markets are efficient and that active managers cannot consistently outperform relevant indices. We believe that we have developed a strategy that can capture the benefits from both sides of this debate- we call it Core and Explore.
In areas where we believe the market is efficient we use exchange traded funds to replicate a specific index and in areas where we want to add Alpha we may employ an active manager.
INVESTMENT POLICY STATEMENT
We develop client-specific investment strategies that emphasize diversified asset allocation. We work with each client to create a personalized Investment Policy Statement, which outlines the strategy that is appropriate for that individual. The Investment Policy is updated and adjusted to conform to the client's changing needs.
investment advisory brochure
our five step process |
1. IDENTIFY OBJECTIVES
The starting point for our clients is determining their financial goals, expectations and their investment time horizon. This understanding is critical to developing and achieving stated objectives.
2. RISK PROFILING
Focusing on investment return without a similar focus on risk is only half an analysis and results in a flawed and incomplete strategy. Each of our client's individual investment goals are evaluated with equal focus on risk and return. The objectives of risk profiling is to create a portfolio that can achieve the defined goals and objectives in a manner that is consistent with the client's risk tolerance.
3. DEVELOP ASSET ALLOCATION
The foundation of our philosophy is based on the Modern Portfolio Theory, developed by 1992 Nobel Prize winners William Sharpe and Harry Markowitz. Once we have identified each of our clients' individual investment experience and risk tolerance, we can recommend placement of their assets with the appropriate sectors & outside money managers. The resulting portfolio, because of its allocation among a number of different asset classes, should assume less risk than otherwise necessary to meet the stated return objective. The portfolio's return objective becomes the benchmark for future performance assessments.
4. INVESTMENT SELECTION
We have a process for recommending investment options & money managers within each asset class that is consistent throughout our practice and reviewed on a quarterly basis. Our process includes an extensive qualitative and quantitative analysis, taking into consideration statistical performance measures, and management experience and tenure. The combination of this information with our technical analysis provides guidance in making both strategic and tactical allocation decisions in our clients' portfolios.
5. monitor and review
Finally, we schedule reviews to measure performance against our stated goals. Through this process we identify any changes or concerns that may require an adjustment to the client's Investment Policy. We also look to re-balance client portfolios to bring them back into line with targeted allocations and risk levels. Finally, we benchmark portfolio and individual managers against relative performance measurements.