Nowhere is our "complex made simple" mind-set 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 that combines traditional equity and fixed income investments. This generally represents the bulk of each client's portfolio. We then augment the core allocation with one or more 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, tactical investments may make "risk-on" or "risk-off" adjustments based on current market conditions, resulting in greater or reduced overall market exposure. This tactical risk-on/risk-off approach is our signature trading strategy; however, other tactical investments may include specific securities, asset categories, or products that speak to the interests or needs of a particular client. This isn't some antiquated "set-it-and-forget-it" model. It's a collaborative, risk-managed process that combines various methodologies into a single blueprint, all designed to create the potential for incremental long-term investment returns.



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 primarily with low-cost passive investments.  


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 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 primarily with low-cost passive investments.  


Tactical Allocation

The tactical sleeve of each portfolio is a quarterly-reviewed 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. 

Core Equity Characteristics:

  • Domestic and Foreign Equities
  • Low Cost
  • Primarily Passive 
  • Diversified

Core Fixed Income Characteristics:

  • Domestic and Foreign bonds
  • Low Cost
  • Passive and Active
  • Diversified

Top Tactical Investments:

  • Managed Volatility
  • Individual Stocks
  • Individual Bonds
  • Dividend Focus
  • Cash Alternatives
  • Socially Responsible (ESG)
  • Real Estate
  • Alternative Investments