Our Investment Philosophy

Strategic asset allocation is the foundation of our investment approach. Our portfolios are constructed by selecting and combining asset classes to generate an optimized risk-return profile that seeks the highest probability of meeting client goals given a wide variety of possible market environments in the future. We exercise discipline in maintaining a stable allocation over time in pursuit of long-term investment outcomes. We also seek to impgrove returns by emphasizing investments with certain characteristics known as “factors” that tend to deliver higher returns over extended periods of time.

Risk is an inherent reality of market participation and is ultimately the source of investment returns. Therefore, we believe that managing risk means identifying and selecting appropriate risks for client portfolios in an intentional and deliberate manner. We emphasize diversification both across and within investment categories to spread risk among a variety of investments. We also seek to minimize process-oriented risks by relying on disciplined data-driven decision processes that help mitigate errors and biases due to human factors.

Research shows that costs associated with the management of portfolios typically have a negative impact on investment returns. As stated by Vanguard founder John Bogle, “In investing, you get what you don’t pay for.” In addition to maintaining a competitive advisory fee, we work to control a variety of other costs—such as embedded fund expenses, potential tax liabilities, and trading costs—to let your money work efficiently for you.

Our emphasis on asset allocation, risk management, and expense control results in a manager selection process that focuses on asset class-based investments. In public markets, this often means using exchange traded funds (ETFs) or mutual funds instead of directly investing in individual companies. These investment vehicles provide consistent and transparent exposure to a specific market segment, have extremely diversified portfolios, and can be implemented in an efficient and cost-effective manner. We have found that this is the most reliable way to participate in the growth potential of capital markets.