Risk management is an essential focus. We prefer to deliver steady gains to our clients rather than scary swings in returns. As a result, diversification is a fundamental part of our investment philosophy. We thoughtfully allocate assets across a global investment market, pulling in international stocks and bonds, and other investments designed to your investment experience.
When a segment of the market is "hot", for example, technology stocks, your diversified managed portfolio will probably not keep up with the hot sector, but in down markets, we hope our diversification efforts will reduce the magnitude of portfolio declines.
Over the years financial research has shown that risk is best diminished by holding assets over a long period and by diversifying your portfolio with low-correlation assets. We effectively manage our client’s and our own portfolios in a way that pursues a path of minimalizing principal fluctuations within practical market expectations. We will stay within the boundaries of the stated goals and the chosen asset allocation.
Investors should understand that risk is part and parcel in the investment world and results can and do fluctuate more than initially expected. There may be occasions when negative short-term performances must be endured in order to reach longer-term goals. It is also crucial to factor in the risk that inflation poses. Should a portfolio not be constructed to outrun inflation, it can reduce its power due to the inevitable eroding effects of inflation.