The components of our Investment Management process are asset allocation, investment selection, cost control, quality of management, and investment time horizon.

• Asset Allocation is a principal driver of long-term investment success, accounting for as much as 90% of total return, and is a major component of risk control. It is possible to reduce risk (volatility) in an investment portfolio by diversifying among asset classes that tend to rise and fall at different times (asset classes whose period-to-period returns have low correlation coefficients). We also believe that it is possible to do this without sacrificing long-term investment performance. We help clients establish and stick with long-term asset allocation strategies. Although we do temper long-term strategies with shorter-term tactical strategies, we believe in doing so only to limited extents within the framework of long-term strategies. Of course, diversification does not assure a profit or protect against loss in a declining market.



• Investment Selection is the most important factor in generating superior relative performance. This is achieved with appropriate security selection across equity and fixed income sectors, coupled with the use of investment vehicles including stocks, bonds, and mutual, closed-end, and exchange-traded funds.



• Cost Control is the third most important factor in achieving long-term objectives. This includes minimizing trading turnover, using tax minimization strategies for taxable accounts, minimizing expenses by selecting investments with an eye toward both performance and cost, and directing purchase of securities where appropriate.



• Quality of management, whether for a company or fund manager, is recognized as a key to successful long-term results.



• Investment time horizon. Most investment decisions should be of a long-term nature. Investment Policy should accurately reflect the client’s needs and objectives.



• Our Macro Asset Allocation is used to establish a Core Portfolio Strategy, divided between Equities, Fixed Income, Cash, and other Alternative asset classes. This allocation process extends into sub-asset categories, including equity value and growth styles, mid and small cap stocks, international, emerging markets, bonds, high-yield bonds, real estate, commodities, and others. Several additional strategies are designed to reflect specific client needs and risk tolerance. They reflect the Core Portfolio, with adjustments to asset classes to reflect portfolio objectives.