Portfolio Design

After the initial planning process is complete, a target return is established. We then develop an Investment Policy and an Asset Allocation Strategy. Investment selection is the final stage of the investment process.

Portfolio assets are allocated among the major classes of cash, stocks, bonds, real estate and other alternative asset classes, such as commodities, based upon market conditions. Stocks are divided among domestic and foreign, large and small capitalization. We further divide domestic stocks into growth and value styles. Bonds are separated by investment quality, taxability and duration. In addition, we may use real estate investment trusts (REITs) for the real estate component of a portfolio to complement the client’s investment property holdings.

Using the Investment Policy created as our guide, we will implement, manage and monitor performance regularly. One of the greatest challenges facing any investor is determining the blend of assets of the portfolio; a blend that is intended to achieve the investment objectives for the portfolio while still exposing the investor to a level of risk he can tolerate both personally and financially.

In addition, while tax considerations do not drive our portfolio management decisions, we exercise care in the appropriate placement of investments within tax-deferred and taxable account structures.