How would you describe your investment philosophy?

Our investment philosophy is based on three core tenets:

  1. Asset allocation drives investment results
  2. The future is not predictable
  3. Fees and taxes matter

Therefore, we believe long-term investors should focus on what they can control:

  1. Build an allocation plan in accordance with specific client objectives and constraints
  2. Broadly diversify across, and within, various asset classes and geographies
  3. Minimize fees and taxes through investment selection and asset location
What is the rationale for your investment philosophy?

Click here to read a detailed explantation of the rationale behind our investment philosophy

What type of investment services do you provide?
  • Investment strategy & policy development
  • Asset allocation & asset location plan
  • Investment selection & oversight
  • Consolidated reporting & performance analysis
Do you invest in all asset classes?
  • We broadly diversify across, and within, multiple asset classes and geographies
  • While we have the ability to invest across all asset classes on behalf of our clients, the decision is driven by the unique objectives and constraints of each individual investor
  • Given that our clients are U.S. taxable investors who value low-cost, liquid, and transparent investment instruments, we generally will not have much exposure to various alternative and other illiquid investment strategies such as private equity, hedge funds, and private real estate.
How do you classify different asset classes?

We categorize investments into four main asset classes:

  1. Cash and equivalents - Cash, Money Market, Treasuries
  2. Fixed Income - Municipal, Government/Agency, Corporate, TIPS
  3. Equity - U.S., International, Emerging Markets, and Frontier
  4. Other - Commodities, Hedged Strategies, Private Equity, Real Estate, Other
What is the role of certain asset classes within a portfolio?

Within a broadly diversified portfolio, each asset class will serve in one of the following three capacities: 1) income-generator, 2) risk-reducer, and/or 3) return-enhancer.

In general, we view each asset class, other than Equity, in a risk reduction capacity. We expect equities to be the long-term driver of growth in the portfolio.

  1. Cash – Risk-reducer; dry powder; opportunistic
  2. Fixed Income – Generally, risk-reducer and income-generator
  3. Equity – Generally, return-enhancer; inflation hedge; can be income-generator
  4. Other - Generally, risk-reducer; can be return-enhancer
Do you tailor asset allocation plans for each individual?

Yes. Each asset allocation plan is tailored to a client’s specific objectives and constraints.

We evaluate numerous considerations such as time horizon, income requirements, liquidity constraints, cash preferences, asset location, tax circumstances, sector and security restrictions, transparency preferences, concentration restrictions, fully invested requirement, vehicle structure restrictions, tax reporting restrictions, and performance fee restrictions.

Do you factor in assets held outside of your advisement?
  • Absolutely. Understanding what assets are held outside of our control is critical in determining the appropriate investment policy, asset allocation, and portfolio construction for each client.
  • Understanding the entire picture helps us craft a holistic investment strategy and asset allocation plan that complements, not conflicts, with assets held away.
  • Additionally, this is an important risk management component that helps ensure proper diversification.