We build portfolios for long-term investors. All our portfolios have a few things in common.
- Diversification. Global diversification can improve performance and control risk.
- Objectivity. Clients’ interests come first. We avoid conflicts of interest. No proprietary products.
- Balance. We balance our understanding of history and research with real-world experience.
- Elegant Simplicity. Leonardo Da Vinci said, “Simplicity is the ultimate sophistication.”
- Low Cost. Controlling costs and expenses allows clients to keep more of what they earn.
- Discipline. Our well-defined process allows us to better navigate both good and bad markets.
- Patience. Success in investing takes time. We are willing to wait for our ideas to bear fruit.
Ten Beliefs Underlying Our Investment Process
- Remain humble. No one can predict the future. There are simply too many variables.
- Don’t confuse likelihoods with certainties. You can calculate probabilities, but there are no guarantees.
- Be prepared for the unexpected. History provides insights about the future, but it won’t repeat itself.
- Academic research finds “truth” by looking backwards. Consider how it will translate in the future.
- Good ideas take time to mature. Knowing something will happen is not the same as knowing when.
- Controlling expenses is important. Reducing fees, transaction costs and taxes improves results.
- It is difficult for active managers to add value. Reaping their value requires knowledge and patience.
- Diversification works. But it should be done intelligently to avoid over-complexity and excess costs.
- Emotion is the enemy of good decisions. Discipline is important. Judgment and restraint are mandatory.
- Every portfolio has an investor attached. A portfolio is the result it produces and the experience it creates.
Global Explorer Series
The core is the foundation of each portfolio. The core consists of low-cost ETFs that track US and International stock and bond markets.
Satellites investments provide the opportunity to benefit from improved diversification, specialized strategies, or the skill of an active manager.
Satellite investments are added only when our investment committee has high conviction they can increase return or reduce risk.
Satellites investments may be actively managed mutual funds, index funds, or ETFs.
We also offer tax-sensitive versions of all Global Explorer portfolios.
Global ETF Series
The composition of these portfolios is elegantly simple to provide broad diversification, while minimizing costs. They use only low-cost ETFs that track US and international stock and bond markets. The portfolios are managed to a fixed asset allocation target and are rebalanced annually.
We also offer tax-sensitive versions of all Global ETF portfolios.
Factor Select Series
Decades of research has identified certain “factors” that have produced excess returns over long time periods. Factors are characteristics shared by groups of securities that distinguish them from other securities. Examples include “value,” “size,” “quality,” and “momentum.”
These factors have had relatively low correlation to each other. That is, they tend to produce their performance benefits during different time periods. By combining funds with exposure to all of them, we seek to gain more stable returns through added diversification.
We build these portfolios using an open architecture approach that allows us to utilize funds from different asset management firms. Each firm defines and manages exposure to the factors somewhat differently, giving our portfolios additional factor diversity.
We also offer tax-sensitive versions of all Factor Select portfolios.
Dimensional Select Series
Research has identified “factors” that have historically produced excess returns over long time periods. Factors are characteristics shared by a group of securities. Different factors produce their performance benefits during different time periods.
Dimensional Fund Advisors (DFA) manages mutual funds and ETFs that incorporate this factor-based research into their fund management process. The Dimensional Select portfolios are built solely utilizing funds managed by DFA.
Our Dimensional Select portfolios are available only to advisors who are approved to purchase DFA funds.
We also offer tax-sensitive versions of all Dimensional Select portfolios.
ESG Global Core Series
Investing to Make the World a Better Place
We build and manage the ESG Global Core portfolios to emphasize investments that make a positive impact across a range of environmental, social, and corporate governance issues.
The portfolios are built primarily using ETFs or mutual funds that track ESG-oriented indexes. They may also include actively managed ETFs or mutual funds.
The goal of these portfolios is to make a positive impact on society and the environment, while generating positive long-term investment returns.
The target allocations for each portfolio are intended to remain constant, although ongoing monitoring and research may result in occasional changes to these targets over time.
The ESG Global Core portfolios are rebalanced periodically.
We also offer tax-sensitive versions of all ESG Global Core portfolios.
A Direct Indexing Solution
Customized Index Portfolios are broadly diversified portfolios of stocks that are personalized to meet individual needs and preferences. They allow us to tailor a portfolio to meet a wide range of financial goals, values, and tax situations.
Direct indexing builds on the benefits of index investing but adds a level of personalization not possible with mutual funds or ETFs.
We’ve designed a simple process for capturing the unique needs and preferences of each client and incorporating them into a customized portfolio.
A Place to Hold Highly Liquid Assets
We build and manage the Short-Term Reserve Portfolio to target “better-than-bank-account” returns, while avoiding significant downside risk.
The portfolio’s return goal is to generate 0.5% to 1% above Treasury-Bills over 12 to 24 months.
We expect the portfolio’s standard deviation to be less than 1% over a 1-year holding period, but it could be significantly greater during periods of market turbulence.
The Short-Term Reserve portfolio is a very conservative capital preservation strategy. It is not appropriate for investors whose goal is long-term capital appreciation. It should not be viewed as a substitute for a bank account since it is not insured and will experience volatility.