5-Step Asset Allocation Process

  1. I begin the investment process by carefully listening to the client and gaining a thorough understanding of that particular client’s unique goals, objectives, risk tolerance, time horizon, and other circumstances. I DO NOT invest in model portfolios that in my opinion are over-diversified, not customized to the client, and pay no attention to value.
  2. I select from individual stocks, exchange-traded funds (ETFs), and low-cost mutual funds (Vanguard Funds and T. Rowe Price) to create a diversified asset allocations across asset classes, geographic regions, sectors, and market capitalizations. I combine asset allocation with diversification to ensure a client’s portfolio will be managed in a prudent manner. I then implement the strategy to achieve the client’s investment objectives.
  3. I employ bottom-up approach to determine which investments offer the most ideal reward-to-risk ratio, which incorporates mainly fundamental analysis. I analyze balance sheets, income statements, and cash flow statements to value each investment.
  4. All investment strategies use a core-satellite approach to portfolio construction. Each strategy is constructed using two components – a strategic allocation which replicates market risk and return (the beta) and a satellite allocation which designed to generate returns in excess of the overall market (the alpha). The core-satellite approach is dependent on the client. While some clients want low cost funds such as Vanguard, others want individual stocks that offer higher return potential.
  5. I then determine an appropriate investment strategy for the client based on those understandings. I partner with my clients in a way that they have input throughout the entire process so that they can gain confidence in selecting from ETFs, individual stocks, bonds and other types of securities to create a portfolio.

Asset Allocation does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

Exchange-traded funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.