We use an Investment Management Committee to manage portfolios. While each advisor has the ability to deviate somewhat from the committee’s decisions to better serve the client, we believe a committee helps maintain a prudent, stable thought process toward asset allocation, investment decisions and security selection.
Portfolios generally consist of the following:
- Institutional Mutual Funds (IMFs) are selected through a rigorous process that includes a review of managements’ propensity to preserve capital, reduce costs, and long-term performance track record.
- Exchange Traded Funds (ETFs) are used to provide wide diversification at a very efficient price, or to pinpoint exposure to a specific market sector.
- Alternative investments are chosen to reduce market volatility and enhance returns.
- Individual stocks & bonds are utilized when a unique opportunity exists or client needs necessitate.
Factors that help determine recommendations can include:
- Expense ratios
- Morningstar® and other ratings
- Peer group performance
- Consistency of returns
- Standard deviation and other volatility measures
- Manager tenure and/or track record
- Investment philosophy
- Up and down market capture ratios
- Diversification
- Style drift
- Turnover ratios
