Evidence-BasedInvestment Management

Our approach to investing is to focus on what works, what makes sense, and what we can control. Our evidence-based investment approach is backed by research from respected industry leaders (see details below). We do not trade excessively, pick individual stocks, or pretend to know the future. We believe that it is time in the market, not market-timing, that maximizes client returns.

There are six key components to our investment management approach:

Diversification

Diversification is our mantra.

We focus on asset allocation, which is traditionally viewed as the primary driver of investment returns.¹ We seek to optimize client portfolios with broad diversification over as many as 12 different asset classes. Importantly, we also provide access to both public and private markets. Effective diversification can lower investment risk (portfolio volatility) while maintaining—even potentially increasing— expected returns.²

Cost Saving / Indexing

We vigorously pursue opportunities to save you money.

This includes minimizing expenses from taxes, trading costs and fees. This is one reason why we are strong advocates of market-tracking index funds and exchange traded funds. The low-cost and diversification strategy of these funds allow index-based investments to typically outperform the vast majority of active managers over multi-year periods.³

Tax Efficiency

It’s not just what you make on your investments, but what you keep that matters.

We strive to minimize your taxes by: 1) using securities that generate tax-exempt and tax-sheltered income, 2) managing trading activity to shelter or defer gains, and 3) prioritizing investments that generate tax-advantaged income and gains. We also help clients to take advantage of the benefits of tax-sheltered education plans, retirement accounts and other tax-advantaged vehicles.

Factor-Based Investing

We emphasize portfolio characteristics (factors) that have historically added to returns or reduced investment risk.

Examples of such factors include company size, valuation, profitability, momentum and corporate social responsibility.⁴

Risk Management

We customize your portfolio to your risk tolerance.

For each client, we work to find the right balance of safety and growth. We utilize sophisticated tools to help optimize and stress test portfolios. We reduce risk through broad diversification. Utilizing a wide variety of different types of investments, including assets like real estate and private offerings, helps smooth out returns and lower volatility (risk).

Portfolio Rebalancing

We periodically sell a portion of those asset classes that have appreciated the most and buy more of those that appreciated the least to bring portfolios back in line with target allocations.

This common sense approach of buying low and selling high is supported by research that shows it can both add to returns and reduce risk.⁵

1 Determinants of Portfolio Performance by Gary P. Brinson, CFA, Randolph Hood, and Gilbert L. Beebower

2 Portfolio Selection, Harry Markowitz

3 S&P Global: SPIVA® (S&P Index Vs. Active)

4 Common risk factors in the returns on stocks and bonds, Eugene F. Fama & Kenneth R. French, and Assessing Risk through Environmental, Social and Governance Exposures, Jeff Dunn, Shaun Fitzgibbons, Lukasz Pomorski

5 To Rebalance or Not to Rebalance, Gene Podkaminer & Wylie Tollette, Franklin Templeton