Our investment approach is multi-dimensional:
First, we develop a macro view of the world: establishing our annual outlook for economic growth, interest rates, inflation, labor markets and consumer spending.
Second, we identify “long-term investment themes” such as onshoring/rebuilding the U.S. manufacturing base, growing demand for healthcare products and services, the increasing demand for electricity and the deployment of artificial intelligence including robotics.
Third, we establish our proprietary outlook and specific model allocation for various sectors of the economy – for example technology, communications, manufacturing or financials. This allows us to determine which stock sectors we might want to overweight or underweight in our model portfolio compared to the market indices.
Fourth, we define our model portfolio allocation for style (value, core, growth) and size (large stocks, medium stocks, small stocks). We also define our model geographic portfolio allocation for US stocks compared to Developed International stocks and Emerging International stocks.
Fifth, we look at the overall level of risk/reward with each portfolio allocation mix compared to standard industry benchmarks.
Our Economic Outlook and Model Allocation Mix is utilized to invest client assets among a diverse group of experienced investment managers covering U.S. stocks, international stocks, bonds, and alternatives. Each manager that is selected has to pass through our extensive due diligence process involving both qualitative and quantitative analysis.
Client portfolio performance is monitored on a daily, weekly, and monthly basis – reviewing risk and return over these time periods compared to a model portfolio benchmark.
Quarterly Performance Reports are delivered to clients for their review.
