Investment Management

We use an asset allocation approach in managing our client’s accounts. We believe implementing a portfolio strategy based on this is important to optimizing one’s portfolio performance. It has been concluded from various studies that up to 90% of an investor’s rate of return come from having an appropriate asset allocation mix. We start first by providing our clients with a customized allocation between equities, fixed income instruments, alternative investments, and cash.

In terms of equities, we take into account market capitalization (small, mid, and large), investment style (value, blend, and growth), industries and sectors, as well as the split between U.S. and international stocks when creating our allocation strategy.

On the fixed income side, we determine the appropriate weighting between government and corporate bonds, while considering the duration and maturity, the ratings, and the amount of domestic versus foreign exposure.

Alternative investments, such as commodities and real estate investment trusts (REITs) can be appropriate for a portion of one’s portfolio given that they typically are an inflation hedge.

For our client portfolios, we use a combination of individual equities and fixed income securities, exchange-traded funds (ETFs), exchange-traded notes (ETNs) and mutual funds. All securities are publicly traded and fully liquid.

Since the global markets are continuously changing, we frequently review clients’ portfolios as well as rebalance them regularly to maintain the target allocation. We are disciplined and thorough in our approach as we strive to provide our clients with consistent risk-adjusted returns.

The investments and services listed may not be appropriate for all investors. Steward Partners recommends that investors independently evaluate particular investments, and encourages investors to seek the advice of a Wealth Manager. The appropriateness of a particular investment will depend upon an investor's individual circumstances and objectives.

Asset Allocation does not assure a profit or protect against loss in declining financial markets. All investing involves risk including possible loss of principal.

Rebalancing may cause investors to incur transaction costs and, when rebalancing a non-retirement account, taxable events may be created that may increase your tax liability.