Investment Policy Statement

People invest money to build wealth and to reach various life goals. We provide the sound advice that increases the probability of reaching those goals. Through asset allocation, we can help any individual or organization derive a strategy to meet both their short and long-term goals without taking any undue risk. 

We believe that active portfolio management will outperform the general market over time. Thus, we use a thorough selection process when building portfolios primarily of actively managed mutual funds. Historical performance is important, but not as important as risk management. Therefore, the amount of risk taken with each investment and the amount of risk each investment adds to or takes from the portfolio should be primary concerns when selecting investments for each client. By taking this strategy, we believe we can add alpha to our clients’ portfolios and help them build lasting wealth.

For tax sensitive clients, portfolio turnover should be minimized. This can be done by selecting either low-turnover, actively managed products or by selecting individual securities. If stocks are chosen, they will be selected by analyzing the companies’ financial statement and selecting stocks with strong financial ratios in categories such as liquidity, debt management, turnover, and profitability. Having these strong ratios reflects the competence of both the financial management and the operations management of the companies. Also, the companies should be selected when they are considered under-valued by analyzing the companies’ value ratios and comparing them to other companies within their industry as well as the general market.

By using an efficient frontier, we will help all clients derive an asset allocation model that fits their risk tolerance while maximizes their return. Having discipline and patience is a characteristic shared by most successful investors. By using asset allocation, we will minimize emotional investing which will allow clients to remain invested through all market cycles. We believe that time in the market is much more important than timing the market.