565 Montgomery Street
Our investment strategy is a multi-asset balanced portfolio utilizing multiple asset classes to enhance performance and reduce risk. The overall performance of a diversified portfolio is more important than the performance of any individual fund.
Building an investment portfolio is a lot like conducting a symphony orchestra.
Great music is all about diversification. Only by adding diverse instruments together, can we achieve the desired outcome. However, there are some instruments in a symphony orchestra that most of us would never enjoy listening to individually, like bass drums or chimes. But, without those instruments the music would be flat.
Similarly, investment portfolios should include a wide variety of diverse instruments or “assets”. Mutual funds that invest in US stocks are a core instruments for a portfolio, analogous to violins in the orchestra. But, US stocks are only one asset class. More asset classes are needed. We need non-US stock. But even after adding non-US stock, our portfolio still only has “stock” instruments. We need diversifying instruments such as bonds, real estate and commodities.
Each investment asset adds an important dimension to the portfolio because each asset behaves differently. This diversity is vitally important in a symphony orchestra … and in portfolios.
Our core strategy for the investment portfolio utilizes 7 core asset groups allocated among 12 subcategories.
Although all twelve categories are utilized in a portfolio, the amount allocated to each category is determined by each client’s unique needs and circumstances.
Asset allocation does not assure or guarantee better performance and cannot eliminate the risk of investment losses. Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses. Investments are subject to market risks including the potential loss of principal invested.