Global Investment Management
We construct broadly diversified portfolios tailored to each clients' individual needs. We utilize multiple asset classes, including stocks (U.S., international and emerging markets), bonds (taxable, tax-exempt, inflation-protected, international) and real estate securities (U.S. and international).
We have partnered with world class money managers Dimensional Fund Advisors for global equity portfolios and Vanguard for fixed-income portfolios. Each firm specializes in "passive" or index-related portfolios. The objective of passive investing is to match, not beat, the return of a particular area of the capital markets. The benefits, relative to traditional "active" management, are superior long-term performance, broad diversification, consistency, low cost, and tax efficiency.
Client portfolios are custodied at Charles Schwab & Co., and TD Ameritrade.
Dimensional Fund Advisors
Dimensional is a leader in passive equity management, with deep connections to leading academic financial economists. A pioneer in creating many strategies now taken for granted in the industry, the firm was originally founded in 1981 to provide passive management of U.S. small cap stocks. Dimensional later introduced its first value strategies based on the research of professors Gene Fama (University of Chicago) and Ken French (Dartmouth).
Financial science over the last fifty years has shown that expected returns in the equity markets can be summarized in three dimensions. The first is that stocks are riskier than bonds and have greater expected returns. Relative performance among stocks is largely driven by the two other dimensions: small vs. large and value vs. growth. In each asset class, Dimensional focuses on capturing the systematic performance of these broad market dimensions (size and value) rather than the random fluctuations of individual securities.
We use Dimensional's Core funds for U.S., International, and Emerging Markets stocks. Each Core fund holds stocks across the multiple areas of a market – from large cap to micro cap. Unlike conventional index approaches, the securities are not held in their market-weighted proportions. The portfolios increase the relative weight of small cap and value stocks, where expected returns are greater. In aggregate, our global equity portfolios hold approximately 12,000 stocks from 44 countries across the world.
Please watch David Booth, CEO of Dimensional, discuss “The Evolution of Indexing and Dimensional”.
Further information is available at Dimensional's website: dimensional.com
A pioneer in index investing, Vanguard strives to minimize tracking error, keep costs low, and maintain diversified portfolios that reflect the characteristics of their benchmarks. Management expertise plays a major role in their bond index funds, in which the sheer number and illiquid nature of many securities make full replication of a benchmark prohibitive.
Low expenses give Vanguard a durable performance advantage because costs typically represent a higher percentage of gross returns in fixed income investments than in equity investments.
Further information is available at Vanguard's website: vanguard.com