Our Strategy

Our investment strategy is a multi-asset balanced portfolio utilizing multiple asset classes designed to enhance performance and to help 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 programs and diversification do not assure a profit or protect against loss in declining markets or guarantee that any objective or goal will be achieved. Investments are subject to risk, including the loss of principal.