Unlike our competitors, our portfolio creation is not based on models. Our clients’ needs differ, and as such their portfolios vary widely across the firm. We adjust the allocations regularly due to changing macro, micro and client specific events.
We report semi-annually on the performance and allocation of each client’s financial assets, but frequently prepare custom reports at the client’s request. We build diversified portfolios that span both the geographic and capitalization spectrums by using no-load institutional share mutual funds and exchange traded funds (ETFs). When choosing a fund, we focus on management tenure, style purity, expenses, past performance, turnover, as well as other factors relevant to future performance. To aid our selection, we conduct proprietary investment screens and monitor funds on a monthly basis to ensure they continue to meet our criteria. We also speak directly to portfolio managers and conduct on-site meetings.
To best utilize our time and resources, typically we do not select individual assets (e.g. public company stocks or bonds). Instead, we select the managers for the different ‘sectors’ of your overall investment strategy. We conduct extensive research on both equity and fixed income mutual funds with the goal of having 2-3 seasoned managers in each category. We use passive indices and ETFs to achieve sector diversification at a lower cost. Many of our clients also hold individual stocks, bonds and assets managed by others, which we incorporate into our investment recommendations. This approach aligns with our strategy to diversify portfolios not only across sectors, but also across management styles and outlooks.