Portfolio Services
Asset Allocation Strategies
Our portfolios are managed in a customized manner based upon each client’s individual risk tolerance and return objectives. The cornerstone of our philosophy is a belief that proper asset allocation is the key to consistent long-term investment success. Asset allocation involves dividing an investment portfolio among different asset class categories such as domestic and foreign stocks, domestic and foreign bonds, alternative asset classes and cash. We believe that no one can consistently predict future asset class leadership, thus it makes the most sense to be diversified among multiple asset classes. Our four-step approach is as follows:
- Based upon a determination of your risk and return parameters, one of our five distinct asset allocation strategies is chosen.
- The portfolio is constructed based upon the client’s individual wants and needs. Clients have the option to have their portfolios managed using separate accounts (non-proprietary outside managers) or GN & Company’s own proprietary (internal) portfolios. Unlike most firms, portfolio construction does not take place “overnight.” Individual positions are phased in over a 6-12 month time frame.
- The portfolio is continually monitored and the asset class weightings are rebalanced in order to maintain adherence to the asset allocation strategy.
- Regular communication with the client via face-to-face meetings, emails and/or phone conversations to review results and ensure overall asset allocation strategy is still appropriate.
Our Approach:
All Fixed Income
Primary goal is to maximize current income thorough an 85-100% allocation to fixed income securities. A modest allocation to cash (up to 15%) may sometimes augment the fixed income investments.
- Primary Goal: Income
- Strategic (long-term) allocation: 100% fixed income
- Tactical (shorter-term) allocation ranges: 85-100% fixed income, 0-15% cash
Primary goal is to maximize current income thorough a 55-75% allocation to fixed income securities, complimented by a secondary consideration for appreciation thorough an allocation of 25-45% in equities.
- Primary Goal: Income
- Secondary Goal: Capital Appreciation
- Strategic (long-term) allocation: 65% fixed income, 35% equities
- Tactical (shorter-term) allocation ranges: 55-75% fixed income, 25-45% equities
Primary goal is to offer the potential for both capital appreciation and current income thorough a 40-60% allocation to both equities and fixed income securities.
- Primary Goal: Income & Capital Appreciation
- Strategic (long-term) allocation: 50% fixed income, 50% equities
- Tactical (shorter-term) allocation ranges: 40-60% fixed income, 40-60% equities
Primary goal is to offer the potential for capital appreciation thorough a 55-75% allocation to equities, complimented by a secondary consideration for current income thorough an allocation of 25-45% in fixed income securities.
- Primary Goal: Capital Appreciation
- Secondary Goal: Growth of Income
- Strategic (long-term) allocation: 35% fixed income, 65% equities
- Tactical (shorter-term) allocation ranges: 25-45% fixed income, 55-65% equities
Primary goal is to maximize capital appreciation potential thorough an 85-100% allocation to equities. An allocation to cash (up to 15%) may sometimes augment the equity investments.
- Primary Goal: Capital Appreciation
- Strategic (long-term) allocation: 100% equities
Tactical (shorter-term) allocation ranges: 85-100% equities, 0-15% cash
Equity & Fixed Income Methodology
Equity Investment Methodology:
- We offer the option to manage equities using separate accounts (non-proprietary outside managers); proprietary (internal) stock portfolios, mutual funds or exchange traded funds (ETFs).
- In our proprietary stock portfolios, we utilize a multi-market cap, GARP (growth at a reasonable price) approach buying a mix of established growth and fast-growth companies with a clear franchise or niche.
- We invest in a combination of large and small/mid-capitalization companies. Large-cap companies provide important liquidity. Small and mid-cap issues offer the potential for higher growth/ higher returns, albeit with higher volatility.
- We have direct and frequent senior management contact with many of the small and mid-cap firms owned in the portfolio. We essentially invest in stocks, not the market, and “know what we own.
- Economic sector allocations are closely monitored
Fixed Income Investment Methodology
- We manage bond portfolios as conservative assets with the goal of providing consistent income through a risk-averse strategy.
- Our focus is primarily on municipals, corporates and U.S. Treasuries.
- Principal is protected and portfolio volatility is limited by balancing maturities throughout the yield curve.
Client Reporting Standards
Garrett Nagle & Co., Inc. maintains an independent portfolio management system. Reports are issued to clients on a quarterly basis as well as on an annual anniversary basis.Anniversary reports include a Portfolio Appraisal and Portfolio Comparison Report containing performance for the preceding twelve-month period. Year-end reports include a Schedule of Realized Gains & Losses summarizing all reportable transactions for the calendar year, a Portfolio Appraisal Report and a Performance Report.
In addition to account reporting, clients benefit from a monthly market newsletter and regular phone calls with our Client Relationship Manager providing a market overview and discussing account performance.
