Our Philosophy
Our Investment Philosophy is simple, we focus on asset allocation. Asset allocation aims to balance risk and reward by dividing a portfolio into a mix of assets according to the investor’s goals. Studies show that asset allocation is the single most important factor of strong, long-term portfolio performance. We spread investment risk and maximize returns on our client’s financial goals, risk tolerance, and time horizon. The key elements that we focus on are:
Diversification
To reduce the overall risk of the portfolio, we select investments across different asset classes. Each asset class has its own risk-return make-up. As those classes are combined in a portfolio, investors can potentially achieve more consistent returns over time.
Risk Tolerance
By assessing an investor’s ability to withstand volatility, we can select the appropriate investments. Younger investors with longer time horizons may be more willing to take on more risk for the greater return reward. While older investors nearing retirement may prioritize capital preservation and income generation.
Rebalancing
A critical component to asset allocation is rebalancing. Market performance may change the value of the investments causing the portfolio to drift from its target allocation. Rebalancing aims to protect the investor from exposure to unwanted risk as there is drift. The process of rebalancing involves the purchase and sale of investments to bring the portfolio back in line with the desired allocation, maintaining the risk-reward balance.
Adaptability
Rather than focusing on short-term market fluctuations, we emphasize the importance of a long-term perspective. The growth of a portfolio over a long-time horizon is a priority for us. We maintain discipline in the strategy, adjusting for economic outlook shifts, market conditions, and personal circumstances.
Investment Products: Not FDIC Insured • Not a Bank Deposit • No Bank Guarantee • May Lose Value