Portfolio Diversification & Asset Allocation
At the end of the initial investment planning process, we arrive at the portfolio strategy.
Operating off the notion that no two clients’ situations are identical. Thus, we should not treat their portfolios as such. We are active investment managers at our core and use an in-house portfolio philosophy titled "Project X-Ray," centered around dividend equities as the core holding. For some clients, the percentage may be higher; for others, it may be less. We merely believe that dividend equities (more specifically, dividend growth equities) provide a solid foundation for long-term capital appreciation and lower volatility with a consistent and growing income stream.
“Project X-Ray” proprietary structure for investing that we consider for each client:
- Core Dividend Equity
- Bonds (taxable or tax-free)
- Growth Enhancements (Securities with a primary goal of capital appreciation)
- Income Enhancements (Securities with a primary goal of income generation)
- Alternatives (Real Estate, Metals, Commodities, etc.)
- Private Credit (Debt not traded on the public markets)
- Illiquid/Direct Investments (Hedge Funds, Private Equity, etc.)
Asset Allocation is an essential concept in creating an “all-weather” portfolio that can withstand different stages of the market cycle. Instead of focusing on specific growth or value style equities or Large-cap/Small-cap market capitalization boxes, we look at these with the client’s objectives in mind and their particular function in the overall portfolio.
While we create the strategy and portfolio in-house, we can potentially utilize specialty investment managers for their vast expertise in a specific field. Being an independent investment professional allows us to craft customized portfolios for our clients’ individual needs.