Investment Process

Our investment process has evolved over time and is the result of our more than 60 years of combined investment experience.  The one constant has been our commitment to researching and finding best-in-class investment managers for our clients.  Through our globally diversified Model Portfolios we are able to offer our clients numerous investment performance goals based on each client’s own ability to tolerate risk.

Starting Point

Our first meeting is dedicated to learning about you and your family.  In addition to learning about you as a person and understanding your personal values, we will be seeking to determine your investment objectives and your tolerance for risk.  Everything we do is goals based.  Once we have determined your specific goals, we will work to reach them with the least amount of risk possible.

No one can predict market cycles or market timing with perfect accuracy all the time.  As a result, our Model Portfolios seek to manage the risk you are willing to take to accomplish your objectives.  This process is used in an attempt to control risk, not eliminate it, as there is risk involved in all investments.

Asset Allocation

Asset Allocation is the process of attempting to maximize your investment objectives while minimizing the associated risks.  Diversification is the idea of investing your portfolio in various asset classes with the goal to minimize risk and maximize return, over time.  Our own view is that Asset Allocation is Diversification in action.  This is an acceptance of the fact that each asset class has its own risks and opportunities which are constantly fluctuating based on prevailing market forces.

Our Model Portfolios consist of four global asset classes:  Equity (stocks), Fixed Income (bonds), Hard Assets (commodities & real estate), and Cash Alternatives.  Our Model Portfolios seek to balance these asset classes based on current market valuations, perceived market risk, and each Model’s respective long term target allocations.

Creating Wealth

It is our belief that most investment wealth is created through capital appreciation.  Over time, we believe that stocks, as an asset class, will continue to provide a competitive real return to investors over other investment opportunities.  Our own experience suggests that the most successful investment portfolios involve a long term perspective.  Furthermore, we believe that in order for us to consistently help our clients achieve their goals, we must maintain a deep commitment to sound investment disciplines.

Investment Selection

Each of our model portfolios begins with a long term target allocation using Modern Portfolio Theory, our own long term macro-economic forecasts, and a review of each asset class’ historical risk and return.  Once our long term targets are established, we actively make adjustments to the portfolio based on current market conditions.  In practice, this means that we will deviate, to some degree, from our long term targets in an attempt to first minimize risk of loss and, secondarily, to maximize returns.  We refer to this as our Tactical Allocation.  Please see our Investment Profile Sheets to get more specific asset allocation targets and allocation ranges for each respective Model Portfolio.

Once we have determined our Tactical Allocation targets we must find those best-in-class investment firms to manage each individual asset class.  We strive to employ those investment management firms that take a very serious view towards managing the risk of permanent capital loss.  We utilize various quantitative and qualitative measures to identify firms we believe can provide the best risk-adjusted returns over rolling 5-year periods.  We predominately employ investment managers through no-load mutual funds and exchange traded funds (ETF’s).

In addition to our in-house research, we utilize the resources of various outside independent research firms.  We strive to have a very broad and extensive economic and investment view of the world.  Given the increasingly interconnected global economy, we believe it is imperative to look beyond the borders of our own country to understand the complexity of today’s Capital Markets.

Communication

Keudell/Morrison Wealth Management provides you with written progress evaluations on a quarterly basis.  These evaluations will include a comparison of your portfolio to an appropriate index benchmark, as well as a review of your current asset allocation and historical performance.  In addition, you will receive a monthly statement and, at the end of the year, a 1099/Year-End Summary.  You will always have direct access to our team should you have any questions or concerns.  We encourage our clients to contact us anytime you have concerns or questions about your investment portfolio.  It is through communication that we broaden understanding, through understanding that we inspire trust, and through trust that we foster long term successful relationships.  We have always judged our success by our client’s success.