Investment Process

What does it take to get the most from your investments?  

The investment solution you select should be based on a disciplined process for managing your portfolio.  It should consider a holistic view of your finances and be tailored to your goals.  Your selected strategy should be responsive to changing market conditions, constantly seek new opportunities for growth, and preserve your capital.

When choosing how your money should be managed, the approach should be based on rigorous research, evidence, and experienced professionals.  Our investment professionals are Chartered Financial Analysts (CFA®) with decades of experience managing assets. Their expertise is put to work just for you.

It Starts with Customization

When choosing an investment strategy, be sure that it is not “cookie-cutter”.  You may be tempted to invest in a “one-size-fits-all” investment program, but this could lead you astray.   Because your situation is unique, it is important to establish a plan tailored to your goals and objectives.  It starts with an understanding of your return and risk profile, income needs, time horizon, tax situation and much more.  Investing right from the start can make a big difference in your wealth, and provide comfort over different market cycles.

The Foundation

Ultimately, the mix of stocks, bonds, alternatives, and cash can have a great impact on your investment returns.  Your mix represents the backbone of your investment strategy. It is critical to your success and must be a right-fit for you.  Your strategy should be customized and targeted to provide a competitive expected return.  The risk should be acceptable to you personally. 

This long-term or “strategic” mix of your investments is a starting point that considers the long-term expectations of returns, risk and correlation.  It is important that your strategy is forward-looking, because historical averages of returns, risks and correlation are inadequate to formulate your long-term asset allocation portfolio.  An educated estimate of returns, risk, and correlation should be combined to create a foundation for your growth.   

Seeking Opportunity

Your portfolio should also be adjusted to take advantage of above-average opportunities available in the market.  An assessment of the current economy and capital market conditions should identify above-average opportunities.  This analysis creates a “tactical” allocation that overweight or underweight investments based on their attractiveness.  A good rule-of-thumb is to keep your tactical ranges within 20% of your strategic mix for major asset classes.

Investment Selection

Once your target allocation is established, the investments selected to be included in your portfolio must meet stringent criteria.  This requires due-diligence and attention to detail. 

Individual equity securities should be selected based on quality, valuation, and technical factors screened over a large database of publicly traded equities. The most attractive investments are diversified among sectors, industries, and styles.

Funds and other packaged investments also require due-diligence selecting the best-of-class solutions. A rigorous analysis of expenses, taxes, and returns overtime is critical.  Your investments should consider the people, processes of the organization, and the liquidity of each investment before including them in your portfolio.

Ongoing Monitoring and Adjustments

The decision to buy or sell investments, or to rebalance your portfolio, should be done based on an opportunity and risk assessment.  As investments become more or less attractive, your capital should be adjusted appropriately. The investment solution you choose should make an effort to systematically review your holdings based on these concepts of return, risk, and diversification.

Finally, your investment solution should regularly evaluate the performance of your portfolios by comparing the performance to a broad representative index.  This helps you reap the benefits of a consistent experience within your preferred requirements.