Investment Process

At the end of Q3 2014 there were 78,949 mutual funds world-wide, according to the Investment Company Institute.  At the end of January 2015 there were 6,557 ETFs, 44,824 companies and 138,854 bonds listed world-wide on the 52 regulated exchanges, according to the World Federation of Exchanges.  With all those choices, how can you be sure that you have the best possible portfolio?

  • Our Investment Committee uses a proprietary top-down approach, analyzing factors such as global economic conditions, political developments, currency trends and global investor sentiment to identify opportunities and areas of increasing risk.  We believe the vast majority of long-term returns are derived from these asset allocation decisions.
  • We next look at the type of investments within assets classes.  For example, if we see opportunity in the growing affluence within emerging markets, do we look at consumer discretionary, agriculture, or urban development needs?  Then do we want large multinationals or smaller regional?  Are we looking for growth or value investments?
  • The next step is selecting the specific fund.  At this level we perform rigorous due diligence by reviewing fund management, strategy, and operations, as well as current and historical holdings.
  • We then review our selections and put together a portfolio that best fits your needs, evaluating the correlations between our security choices.
  • We repeat this entire process on an ongoing basis to continually refine and adjust as conditions change.

2011-05 Investment Process PNG

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