There are no shortcuts to achieving your financial goals. So rather than simply measuring risk on the individual security level, we focus on the risk of the entire portfolio by considering how each investment contributes to the overall risk of your portfolio. Through this process we construct an "efficient portfolio" - one which has the highest expected return for a given level of risk.

It would be nearly impossible to achieve this level of investment sophistication and diversification through individual stock and bond selection. By adhering to the basic tenets of investing and following the investment methods detailed below, we construct a portfolio designed to maximize the efficiency of the risk/return relationship. This strategy has served our clients well through the many unpredictable moves of the market.

Strategic Asset Allocation

Asset allocation is the process of allocating portfolio funds among various asset classes. Extensive analysis has been performed which indicates this is by far the most important investment decision.

Asset allocation decisions are derived from broad-based investment research into multiple asset classes. These decisions are not based on the day-to-day market conditions. Each investor's asset allocation is designed to be stable and long-term in nature; research shows that the best returns are earned this way.

The allocations are customized to each investor's return objective, risk tolerance, and cash flow requirements with a primary focus on allocation among stocks, bonds and cash. Further customization is achieved through secondary allocations among domestic and foreign stocks, growth and value stocks, large-cap and small-cap stocks, various alternative investments and, intermediate and short-term bonds. Subsequent opportunistic rebalancing across each of these categories not only controls the risk of the portfolio but also boosts long-term returns.

Core & Satellite Investing

The strategic asset allocation is implemented utilizing a core and satellite investment strategy. This strategy employs broad-based index-linked funds as the core of an investor's portfolio with other more specialized investment options representing the satellite. Satellite investment strategies are employed to enhance return and further diversify the portfolio.

Multi-Manager Approach

Logic tells us that individual money managers cannot be the best performers in every investment area. It is more sensible to allocate your investments among managers or vehicles which are selected for their ability to perform within a specific investment category. This strategy enables us to design a portfolio of complementary investment vehicles best suited to a diversified approach. Additionally, the use of specialists within these asset classes maximizes the potential for value added over the long-term.