Portfolio Management

How do we assist you in meeting your future financial needs?

We approach managing your portfolio in the same way you approach life:
through disciplined, goal-oriented ways.

Modern Portfolio Theory

Modern Portfolio Theory is a calculated and disciplined approach to investing in a portfolio of assets. It’s an approach that looks at expected returns, risk (standard deviation and variance), correlations and other statistical measures of asset classes.

In 1990, American economist Harry Markowitz was awarded the Nobel Prize in economics for this pioneering work, rooted in these basic tenets:

Investors are risk averse.

The only acceptable risk is that which is adequately compensated by potential portfolio returns.

Markets are efficient.

It is virtually impossible to anticipate the future direction of the markets as a whole or of any individual security. Timing the purchase or sale of investments in the attempt to “outperform the market” is highly unlikely to increase long-term investment returns; they also can significantly increase portfolio operating costs. It is unlikely that any portfolio will succeed in consistently “outperforming the market.”

The design of the portfolio as a whole is more important than the selection of any particular security within the portfolio.

The appropriate allocation of capital among asset classes (stocks, bonds, cash, etc.) will have far more influence on long-term portfolio results than the selection of individual securities.

For a given level of risk, an optimal combination of asset classes will maximize returns.

Diversification helps reduce investment volatility. The proportional mix of asset classes determines the long-term risk and return characteristics of the portfolio as a whole (diversification does not guarantee against market losses. It is a method used to help manage risk).

Portfolio risk can be decreased by increasing diversification of the portfolio and by lowering the correlation of market behavior among the asset classes selected.

Correlation is the statistical term for the extent to which two asset classes move in tandem or opposition to one another.

Equities offer the potential for higher long-term investment returns than cash or fixed-income investments.

Equities are also more volatile in their performance. Investors seeking higher rates of return must increase the proportion of equities in their portfolio, while at the same time accepting greater variation of results (including declines in value).

Retirement Planning Strategies to Secure the Future You Want

The future is yours when you have enough money to fund it, right? As you get closer to those so-called golden years, use these retirement planning strategies to build the wealth you need for a secure, joyful retirement.

You already know that you should start planning for retirement as early as possible, and that you should contribute the maximum amount to your employer-sponsored retirement plan. But what other strategies should you be putting into place as you approach retirement? Here are some of our top recommendations.

Taking a Risk Assessment: Knowing Your Risk Tolerance

Do you know how much risk are you willing or able to take when it comes to your investments? That’s a question that your financial advisor is ready to help you answer, and it’s an important one when it comes to meeting your financial goals.

Would you categorize yourself as an aggressive, moderate, or conservative investor? Turns out you might be in an entirely different category than you think. We’re here to help you understand what’s involved in determining your risk, and how your financial advisor will use that to structure your investments and keep you on track to meeting your financial objectives.

Man in suit displaying graphs for two people

Wise Principles of Portfolio Management

Your investment portfolio is an important piece of attaining the financial future you want, but without successful management of that portfolio, your desired outcome could be jeopardized.

Here are our top four principles of portfolio management that every investor would be wise to follow.

Think You Need a Portfolio Checkup?

It’s natural as an investor to want to know how your portfolio is performing. Here’s what you need to know before you ask your financial advisor to double check your portfolio.

First, understand that your portfolio isn’t the equivalent of your financial plan. What’s the difference, and why does it matter?

Two people reviewing financial graphs on paper and computer

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