OUR PERSPECTIVE ON CLIENT RELATIONSHIPS
While some client situations may be similar, we treat each relationship in an individualized manner. For all account relationships – individuals, trustees, professionals, retirement accounts – we begin with thorough discussions of the client’s objectives, concerns, and factors related to their particular financial situation including risk assessment levels. This collaborative approach, where we work with each client to establish account goals and risk parameters, is an integral part of our initial client engagement and is periodically updated in ongoing dialogue.
INVESTMENT STRATEGY AND ACCOUNT MANAGEMENT
We attribute clear and ongoing communication as primary factors supporting our record of strong client relationships and retention. Before we assume management responsibilities of client accounts, we seek a thorough understanding of our client’s objectives for the assets we will manage. Important considerations include liquidity requirements, the timing of expected cash flows, a basic understanding of investments with various types of risk, income and estate tax planning matters, and client-specific factors. During periodic client reviews and when onboarding new clients, we establish realistic objectives and personally tailored strategies for funds being managed.
RESEARCH AND PORTFOLIO MANAGEMENT
We concentrate our research and investment focus on individual stocks, individual bonds, and mutual and exchange traded funds (ETFs). As an independent investment advisor, we have an open architecture investment platform that enables us to select investments without conflicts of interests.
Through asset mix, a portfolio can be tilted toward current income and capital preservation, or directed toward growth of income, and growth of capital. When capital preservation is the primary objective, portfolio focus will be on fixed income securities that provide stability and steady income, mainly through investments in high quality bonds and select bond funds.
For accounts with an appreciation focus, we invest a majority of capital in equities. Equity investments span geographies, market capitalizations, and styles. For appropriate accounts, our primary exposure to equities is via individual common stocks, with smaller complementary holdings in mutual and exchange traded funds.
OUR APPROACH TO COMMON STOCKS
We start with a basic view that common stocks represent an ownership interest in a business. Our goal is to manage portfolios of quality companies that are attractively priced. As we build and maintain portfolios, we remain cognizant of macroeconomic trends and their impact on company fundamentals. While we diversify across industries, our methodology adds value by selective variations in sector allocations. Though our preferred holding period is “forever”, we practice “active” portfolio management.
Economic activity, monetary policies, political changes and corporate management are all dynamic, and we adjust portfolios accordingly. While we consider ourselves long-term investors, when changes are warranted to protect client assets or to capitalize on periodic profit opportunities, we take appropriate actions and measures.
For capital preservation and current income, we invest in various types of high quality, marketable bonds with short to intermediate term maturities. This includes U.S. Treasury, agency, municipal and corporate debt issues. While our intent at time of purchase is to hold bond selections until maturity, market movements periodically provide the proper ingredients for active portfolio management
Fund selections are based on various factors and criteria, including: the fund’s investment objectives; management philosophy, process and style; the fund’s performance history; and management fee and expense structure.
For taxable accounts and entities, prudent tax planning plays an important role in optimizing portfolio returns and is an integral part of our asset management services. Portfolios are structured and managed with an on-going consciousness of tax factors, and in coordination with clients and their tax advisors.