We
employ the
"Active-Disciplined Investment Method" of managed asset allocation*
in constructing client portfolios.
The "disciplined" aspect of this methodology
lessens "style drift" (i.e. Large Cap to Mid and/or Small
Cap) & asset class "over-lapping/over-weighting" (i.e.
multiple stock holdings of any given one company in differing Mutual Funds
or Portfolios), and tax inefficiencies.
"Investment
Game" Styles of Investing - include three major approaches; namely:
-
Passive
- creates a "core" portfolio with benchmark holdings meant to
mirror major market indices; therefore, by its' very nature, this approach
makes it hard to out-perform the market. This is a highly conservative
methodology.
-
Active
- makes more speculative "bets" to enhance returns but in doing so
can subject the portfolio to style drift and phantom income & taxes due
to its' inherent "active" buying & selling style.
-
Active-Disciplined
- marries the above two approaches and in our application creates a stable
core of Index holdings, based on indices like the S & P 500 BARRA, and
then encircles this core with a layer of holdings under the active
management approach to enhance returns while avoiding the negatives of
either the pure active or pure passive methods.
The
"Active-Disciplined" approach concentrates on the method of
implementation, asset mix, and equity mix, rather than timing or specific
manager issues.
The concentric
(around the stable core index) "bets" bias in the actively managed
model are based on such established factors as: the current macro economic
environment (inflation, monetary policy, GDP), interest rates, earnings &
profit expectations, asset class returns, historical data, & consumer
sentiment. Fundamentally, this approach reflects the basic understanding
that markets do not move in a linear fashion and are best understood and worked
with under a "probability standard" calculation that strives to
achieve a risk exposure that is limited to 1 standard deviation, or 68% of the
market as a whole, resulting in an 84% probability or likelihood of worst case
or a best case scenario.
The
Process: To arrive at this "Targeted Portfolio" we
employ financial tools to identify a client's best asset allocation mix by
measuring their investment "Efficient Frontier" arriving at the
maximum return for their specific level of risk.
The
"Targeted Portfolio" is then developed using the ideas generated from
a research process that is predicated on performing rigorous, disciplined, value-added research.
Each asset selected must meet a unique criteria for its respective asset class.
Our research is integrated with advanced techniques of portfolio development to unite
our clients' goals with these investment opportunities.
A
"Targeted
Portfolio" is designed across asset classes in important industries in those companies most likely to perform well relative to their
competitors. In our experience, portfolio strategy "targeted" on
this kind of asset allocation, with broad diversified representation within each asset class, creates the best opportunity
for success with respect to the desired degree of risk any given client
expects.
Our strategic approach
can result in an
effective unification of a clients' goals and appropriate investment opportunities to achieve
consistency and stability over the long term. The result is often an optimal &
customized "Targeted Portfolio" that represents the lowest risk to
correspond with the rate of return a clients' specific investment objectives
& risk tolerances indicate.
Additionally,
we offer simulations of current and future wealth, and various cash flow
scenarios to meet such needs as: retirement income, educational
expenses, health care needs, etc.
[*ASSET ALLOCATION:
INVESTORS NEED TO BE AWARE THAT NO INVESTMENT PLAN/ASSET ALLOCATION CAN
ELIMINATE THE RISK OF FLUCTUATING PRICES AND UNCERTAIN RETURNS]
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Contact Us
Today! Phone: 1.800.482.5347 /
www.LeagueFinancial.com
/ Info@LeagueFinancial.com
