Investment Strategies

Asset allocation manages both risk and return. It does this by investing in equity, bond  and money market funds in set proportions.  Investments are further diversified in investment strategies into more specific categories. This  produces an average rate of return with a blended risk.

Each strategy has its own unique risk/return profile.  Though each strategy manages risk, it does not eliminate it.  There is always a possibility of loss when there is also a possibility of gain.  Generally an asset allocation strategy provides results over time that are consistent with its objective.

Here are some of the investment strategies we implement for clients:

Total Return Strategies

Growth & Income: Typically between 40%-75% is invested in equity funds, and a minimum of 25% in bond funds  (including any cash). The primary objective is appreciation of principal. Bond funds  generate income and reduce overall risk.   The investment time frame is at least 7 years.  This strategy has market volatility. Emphasis is on total return with a contribution from  interest and dividends.

Income &  Moderate growth: Typically between 20%-40% is invested in equity funds, and 60%-80% in Bond funds (including any cash) The primary objective is current income, and the secondary objective is  moderate appreciation.  Equity funds provide access to market returns, and to also generate dividend income.  Bond funds produce income and lower overall risk. The investment time frame is at least 5 years. This strategy has moderate market volatility and interest rate sensitivity. Emphasis is on current income and total return with less risk.

Capital Preservation and Income Strategies

 Income & Capital Preservation: Typically between 0%-35% is invested in equities funds and a minimum of 65% in bond funds (including any cash). The primary objective of this is income. Equity funds  reduce the risk of inflation, and generate dividend income. Bond funds produce interest income and lower overall risky.  The investment time frame is at least 5 years.  This strategy has both limited volatility and also limited growth. The emphasis is  on  current income, safety of principal, and keeping pace with inflation.

Low Risk & Safe : Typically 100% of this strategy is invested in bond funds (Including any cash). The primary objective of this is protecting principal and the secondary objective is income.  The investment time frame is at least 5 years. This strategy has limited volatility and no growth. The emphasis is on preservation of capital.

Capital Appreciation Strategies

Growth & Appreciation: Typically between 60%-100% is invested in equity funds. optionally between 0%- 40% in bond Funds. The objective of this strategy is capital appreciation.  Bond funds diversify, reduce volatility, provide income for reinvestment. The Investment time frame is at least 7 years.  This strategy has full market volatility.  The emphasis is on growth.

Aggressive Growth:: Typically 100% of this strategy  is invested through equity funds. However, up to 15% could be invested in bond funds. The time frame for investment is at least 10 years. This strategy has the highest Risk and the highest expected return.  The emphasis is above average returns.