INVESTMENT PHILOSOPHY
The last decade has shown us that the traditional buy and hold strategy of investing may not be the most efficient due to changing global valuations and extreme price movements. Instead of being constrained to a “fixed mix” of asset classes, J.M. Arbour Wealth Management often employs Tactical Asset Allocation and utilizes Strategic and Dynamic Asset Allocation models when necessary.
Tactical Asset Allocation is an active approach to investing, one that allows us to change our investment holdings based on economic conditions. If we feel an investment is out of favor, we will simply sell it and deploy that capital elsewhere or into cash. By sitting in cash, it allows us to look for opportunities and invest at what we believe to be a low price. This allows for continual risk management through portfolio rebalancing all while maintaining a precise target.
J.M. Arbour Wealth Management also offers algorithm portfolios, common stock portfolios, and the more traditional and well known approach of Strategic Asset Allocation. In all, these methodologies allow our portfolio managers to change the mix of asset classes, find value across the entire global palette of asset classes, and if needed, move to cash quickly.
Our algorithm portfolios consist of five Tactical Asset Allocation models, each managed exclusively in ETFs according to a proprietary algorithm. Unlike some of our other tactically managed portfolios, these models tend to be fully invested and rather than utilize cash to mitigate risk, these portfolios utilize non-correlated assets. Each portfolio adheres to a certain level of risk that is measured by drawdown.
Our common stock portfolios are aimed to outperform their benchmarks over a full market cycle. These portfolios are managed using Dynamic Asset Allocation, which essentially is a long term investment strategy that weights the portfolio to certain asset classes or securities and then rebalances when necessary to maintain the original proportions of the strategy.
Regardless of the type of investor you may be, it makes sense to own assets that are priced with some margin of safety. Owning assets priced below their intrinsic value yields higher long term returns and preserves capital when risks are high. Preservation is a consideration we take very seriously and because of this, we are not afraid to take action if we feel the markets are overpriced or present more risk than the potential reward.
INVESTMENT PRINCIPLES
At J.M. Arbour, our core beliefs and investment principles are followed precisely as each is a major part of who we are, what we do, and what we represent. Not only do these beliefs and principles govern how we select investments, but they also govern how we monitor each investment, and more important, how we interact with you.
Our core beliefs include:
You, our client, are at the center of all we do
Our responses to your questions, requests, and needs are to be timely, clear, and precise
The planning and investment process should be educational, rewarding, and inspiring
The results you experience should align with your stated goals
Our investment principles include:
An ongoing investment research process, to both select and monitor investment choices
Tactical (active/daily), Strategic, and Dynamic management of your investment portfolio
A commitment to transparency of individual holdings and investment results as reported by both robust online capabilities and hard copy statements, all of which can be reviewed in person with your advisor at any time
Periodic face to face meetings to maintain roles in the client-advisor relationship, provide updates, monitor plan efficiency, report results, and enhance client experience