Our approach to portfolio management is based on a few key investment principles intended to help you maximize your return while controlling risk. The focus is on integrating your personal goals with your investment portfolio. To learn more about the science behind our approach, click here.
Integrated Wealth Management
A robust financial plan provides the best context for your portfolio structure. Our overriding theme is that you should never take more investment risk that is necessary to achieve your goals.
Asset Allocation is Key
Determining the appropriate mix of investment categories (or “asset classes”) is the primary determinant of portfolio performance, and thus the most important decision an investor will make. It is therefore the foundation of our investment process. Your Investment Policy Statement helps create a disciplined commitment to your chosen investment strategy.
Markets are Efficient
We do not believe that it’s possible to consistently “beat the market”, because markets are generally efficient. For this reason, “index” or “passively-managed” mutual funds and exchange-traded funds are our preferred tools for portfolio construction. We also do not believe that it’s possible to consistently predict or “time the market”. Attempts to do so only add needless costs, taxes and speculative risk to the investment process.
Risk and Return are Related
The design of our model portfolios is based on the Nobel Prize-winning concept of “Modern Portfolio Theory”.
Proper Diversification is Essential
Since consistently predicting which securities or asset classes will generate the highest returns is impossible, we believe that broad diversification across and within asset classes offers the best opportunity to improve a portfolio’s risk/return relationship.
We can’t control the markets or the performance of the underlying investments, so we focus on what we can control – like investment expenses, transaction costs and taxes – to improve long-term portfolio performance.