Investment Management
Once account objectives and a target asset allocation have been determined, we manage client portfolios actively with discretion. This means monitoring and evaluating constantly changing market conditions and responding with portfolio actions when we deem prudent.
We regularly review our portfolios to ensure that their asset allocations remain within the tolerances established in each client's Investment Policy Statement and rebalance when necessary.
We also track realized and unrealized taxable gains and losses in our client accounts and coordinate with our clients' accountants to manage taxable gains and losses.
Equity Strategy
Portfolios are generally invested in a core model of exchange traded funds and/or mutual funds, providing broad diversification and appropriate sector, geographic and industry exposure. When deemed appropriate, individual stocks may be added to portfolios, providing concentrated risk in businesses that we think are attractive. Stocks are added to our buy list after thorough research. Results of the research are our determination that the equities are substantially undervalued relative to their growth potential and the potential for profitability and cash flow.
Stock mutual funds and ETFs are selected after careful, independent research that considers multiple factors including the investment philosophy, portfolio composition, manager tenure, track record and cost.
Fixed Income Strategy
Fixed income investments are intended to reduce portfolio volatility while providing regular cash flow. These holdings generally include government and investment grade corporate bonds, or mutual funds that hold bonds with similar characteristics. Taxable accounts may hold municipal bonds. Unless instructed otherwise, depending on our evaluation of market conditions, some portion of an account may be allocated to high-yield (junk) bonds.
Allocation between corporate and government bonds will vary depending on perceived opportunities and risk. Key factors for evaluating and selecting fixed income investments include credit worthiness, relative yield, duration and maturity. Fixed income accounts may hold individual securities, bond mutual funds, ETFs, closed-end funds (CEFs) and at times, high cash and/or money market balances.