Investing


Nowhere is our "complex made simple" mindset more befitting than when it comes to our investment process. We don't rely on a static buy-and-hold (-and-hope) approach, nor do we try to time the market or let knee-jerk reactions dictate how we invest. Instead, we combine traditional asset allocation theories with more proactive and ongoing investment considerations, using our signature core-tactical investment application.  Our process is rooted in a sound rules-based and quantitative investment approach that takes emotion out of the investment planning equation.  

It all begins with the construction of a prudent, low-cost, diversified core of both equity and fixed income investments.  From there, we augment the core with one of our tactical investment strategies.  Core investments are generally considered longer-term holdings and reviewed annually for tax-loss harvesting opportunities or cost-lowering substitutions.  Meanwhile, at the beginning of each quarter, we conduct a thorough examination of each client's tactical allocation to identify potential changes such as "risk-on" or "risk-off" adjustments, asset category or sector overweights, or unique client-specific trading opportunities.  By joining these methodologies into a single blueprint, our objective is to create the potential for incremental long-term investment returns that go beyond the static (and antiquated) "set-it-and-forget-it" investment model.  

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Core Equity Allocation

The core equity allocation represents the foundation of stock-related holdings within each client portfolio. The specific amount earmarked to the core equity allocation is based on the investment objectives of each client and is constructed in tandem with the core fixed income allocation of each portfolio.  These two sleeves of each portfolio combine to serve as the underpinnings of our portfolio construction process and are invested almost exclusively among low-cost passive investments.  

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Core Fixed Income Allocation

The core fixed income allocation represents the foundation of bond-related holdings within each client portfolio.  The specific amount earmarked to the of core fixed income allocation is based on the investment objectives of each client, and is constructed in tandem with the core equity allocation of each portfolio.  Again, the core equity and core fixed income allocations combine to serve as the nucleus of your portfolio, and are invested almost exclusively among low-cost passive investments.  

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Tactical Allocation

The tactical sleeve of each portfolio is an ever-changing allocation that is designed to seek incremental performance potential, either by attempting to capitalize on market opportunities or to reduce market exposure during periods of sustained market declines.  The amount earmarked to the tactical allocation of each portfolio is calculated on a client-by-client basis and used as a complement to core allocations.  Because of the opportunistic nature of this allocation—and based on the investment objectives of each client—the tactical allocation may include a variety of investment types.