We construct discretionary-managed investment portfolios by diversifying across many aspects of the financial markets. Our discretionary-managed portfolios invest in multiple asset classes, countries, industries, and styles.

However, even a well-constructed portfolio might miss the mark if it is not consistent with an investor's unique circumstances. Therefore at the beginning of an advisory relationship, we work to understand each client's financial situation, investment objectives, and stated risk tolerance. These factors ultimately determine a portfolio's strategic asset allocation range. For example, a client with a moderate risk profile might have a strategic asset allocation range of 40-60% equities.

We actively manage our clients' discretionary portfolios on an ongoing basis by making tactical adjustments based on market conditions and valuations. As an independent firm we have access to investment research from a variety of sources to guide us in our portfolio management decisions. However, all portfolio adjustments must remain within our clients' strategic asset allocation ranges to maintain long-term investment discipline.

Finally, the financial services industry is known for a variety of confusing fees and costs. Investment-related costs and taxes add up over time and can have a significant negative impact on a portfolio's potential growth. Because we seek to deliver superior long-term risk-adjusted returns, we are cost and tax-sensitive in our selection of investments. For example, we use Exchange Traded Funds (ETFs) extensively in our portfolios because ETFs provide significant diversification in a low cost, tax-efficient format.

The above discussion barely scratches the surface of our portfolio management process. We would be pleased to discuss our investment strategies in greater detail upon request.