While markets and economic conditions change, a well-designed investment strategy can keep you moving forward toward the future you want. In working with you to build your wealth portfolio, we focus on a diversified asset allocation that helps to provide growth and stability while addressing volatility and risk.
Risk increases and decreases over time, but it never disappears. Depending on your risk tolerance, timeframe and goals, we’ll design a diversification strategy that likely will include a mix of equities, bonds and real assets. We focus on asset classes and investments with the potential to outperform relative to risk.
Our research starts with an economic assessment that considers sources of volatility such as interest rates, corporate earnings and global trade. Our investment team studies:
Long-term trends such as demographics and productivity.
Cyclical trends including a reading of business and credit cycles.
Short-term trends like monetary policy and projected growth in corporate profits.
Private market and illiquid strategies that may provide portfolio diversification opportunities.
Impact investing performance including environmental, social and governance (ESG) activities – to design a portfolio that reflects your values as well as your wealth goals.
Putting your needs and priorities first, we research asset classes to help ensure you have the appropriate asset allocation mix. We’ll create a plan that pursues returns at your preferred level of risk.
Equities
Our asset allocation approach retains a bias in favor of U.S. equities. We believe higher accounting standards, shareholder friendliness, corporate governance and rule-of-law generally favor domestic companies over international firms. Since many U.S. companies are multinational, investing in domestic firms still provides access to overseas markets.
Bonds
Bonds can provide current income, diversification against the risk of equities and protection against deflation. In nontaxable accounts, owning domestic-focused fixed income bonds can provide a meaningful correlation benefit to risk assets. In both nontaxable and taxable accounts, exposure to high-yield bonds creates opportunities for current income and expected returns that exceed those of traditional bonds.
Real assets
Real assets can help to insulate investors from inflationary risks. Inflation-protected sectors include real estate and subsectors of the equity market, such as energy and energy logistics companies. Infrastructure, metals, farmland and timber are other portfolio instruments that can work to counteract inflation’s corrosive effects.
With your appropriate asset allocation in mind, we’ll select investment options that we believe support your goals and may offer the greatest potential for returns. We draw from the full range of investment categories available in today’s marketplace, following a rigorous review process.
Market news
Read our up-to-date reports on economic events and news from the markets.
How diversification in investing may reduce risk
Why is diversification important in investing? Because risk never disappears – even in times of economic growth.
5 types of bonds to invest in for diversification
Looking to diversify your investment portfolio without increasing instability? Consider these bonds with a lower-risk profile.