Overview

In our separately managed flexible balanced accounts, clients own a portfolio of both equity and fixed income securities. We strategically adjust the allocation of the portfolios based on our assessment of the attractiveness of individual investment opportunities and our macroeconomic and market views. For these accounts we are able to customize each portfolio based on individual needs such as legacy positions, cash flow or income needs, etc. that may not be met by a mutual fund.

Philosophy

We employ a risk-averse investment strategy predicated on the belief that strong long-term investment results are best achieved through a compounding of reasonable gains and the avoidance of major losses. We, therefore, consciously strive to limit downside exposure as much as to generate upside returns.

The two equity bear markets in the past decade highlight the importance of disciplined capital preservation strategies. We believe the capital destruction caused by bear markets argues for a flexible and risk-averse approach to investing for many investors. Structuring portfolios that combine the growth attributes of equities with the income and capital preservation attributes of fixed income can be a prudent long-term investment solution.

Over long periods of time, we believe a static balanced allocation of 50% equities and 50% fixed income has the potential to provide investors with returns rivaling an equity-only portfolio but with less principal risk, lower volatility and greater income. Additionally, strategically allocating assets heavier to equities in bull markets and heavier to fixed income in bear markets may further enhance returns and better protect capital.

For our Flexible Balanced portfolios, we seek to provide attractive returns over full market cycles and preserve capital using a blend of equities and fixed income. We strategically adjust the allocation of the portfolios based on our assessment of the attractiveness of individual investment opportunities, and our macroeconomic and market views. No more than 75% of assets will be in either fixed income or equities at any given time. Conversely the minimum allocation to either asset class is 25%.

Learn more about our Equity or Fixed Income strategies.

Click here to read our most recent Flexible Balanced Outlook