The most important determinant of returns and risk is asset allocation. Based on a thorough understanding of a client’s objectives, risk tolerance, and current circumstances, we develop for the client a customized equity allocation target. The analysis includes assessing the client’s liquidity needs, income requirements, tax status, current holdings, and particular preferences. Our goal is to lay the foundation for solid long term returns yet keep risk and volatility within reason.
Optimize Asset Allocation:
To provide the appropriate balance for growth and stability, we work with our clients to develop an optimized allocation among stocks and other risk assets, bonds and other types of fixed income, and cash.
Prefer Direct Holdings to Funds:
To reduce costs and provide greater control and transparency, we prefer direct holdings of securities as opposed to funds.
Manage Tax Consequences of Any Restructuring:
We consider carefully the tax consequences of any restructuring of a client’s taxable accounts.
Equity Investment Strategy:
Our equity investment approach is first to ensure that a client’s portfolio is diversified in a balanced fashion over the major industrial sectors. We then choose the specific equities for each industrial category by searching for those that appear inexpensive relative to their fundamentals.
Fixed Income Investment Strategy:
Our approach for investing in fixed income in a client’s tax sheltered accounts is to use high quality taxable fixed income securities, including US Treasuries, agencies, taxable municipals, and bond funds that invest in these securities.
We develop an analysis for a client of the tax implications upon restructuring the portfolios, and strive to minimize them.
* For illustration purpose only