Wealth Management

Investment Philosophy:

Long term growth and income

Risk Management: 

Asset Allocation, Diversification and Dividends

Asset Allocation:

Investing across multiple asset classes helps balance portfolios and produce less volatile annual returns.

Dividends:

Historically dividends are an important component of "total return". Additionally, they provide a consistent source of cash flow for income oriented portfolios.

The table below illustrates the importance of dividends in the stock market's longer-term return. The first column shows the return from dividends, the second column the return from price change alone:

• 1930s: 5.4%, -5.3%
• 1940s: 6.0%, 3.0%
• 1950s: 5.1%, 13.6% 
• 1960s: 3.3%, 4.4%
• 1970s: 4.2%, 1.6%
• 1980s: 4.4%, 12.6%  
• 1990s: 2.5%, 15.3%
• 2000s: 1.8%, -2.7%

Source: JP Morgan

Diversification:

Portfolio volatility is a function of the correlation of the component asset classes. Those asset classes that are less correlated provide the best form of diversification. The same principle applies to individual securities within the same asset class.  Asset allocation does not assure or guarantee better performance and cannot eliminate the risk of investment losses. Diversification cannot eliminate the risk of investment losses.

Summary:

Each portfolio is implemented and monitored according to the individual clients risk profile, goals and time horizon. As the financial markets are dynamic and client's lives and family situations evolve, we monitor both portfolios and personal changes. Like a marathon, we focus on the long run one step at a time.