|
|
Asset Management Individual account management begins with a detailed review of a client’s needs and expectations based on such factors as cash flow requirements, potential tax obligations, and risk tolerance. A thorough understanding of these and other factors allows us to develop a strategy based on the proper asset mix to meet jointly agreed-upon objectives. Diversification Policy Portfolio diversification is accomplished through an asset allocation approach once specific goals and risk parameters are quantified. Equity allocation is achieved through sector/industry analysis and rotation, and is based on specific account requirements with regard to expected growth, cash flow, pre-established quality business guidelines and tolerance to volatility. Individual securities are analyzed based on a variety of factors such as the strength of the issuer’s balance sheet, price-to-earnings ratio, book value, and return-on-equity; as well as market position for product consistency of earnings and dividend growth. A combination of these fundamental factors combined with other industry comparatives and technical analysis enables us to isolate individual issues that meet the strategic objectives of the portfolio. Diversification is important to mitigate and manage risk; but it also provides opportunity and enhances potential returns. We believe that the inclusion of international investments and commodity-oriented common stocks can broaden the opportunity set without significantly changing the portfolio’s overall risk profile. Debt allocation is based on the income and cash maturity needs of the client with a primary focus on the quality and financial stability of the issuer. Bonds allow us to provide a high- quality income stream while also mitigating the volatility of the portfolio. |
|
|||||||||
