Confidence in Knowing We Care
As CERTIFIED FINANCIAL PLANNER™ professionals and independent investment advisors, we offer our clients the financial confidence of knowing that we make investment recommendations that are in our clients' best interest. This is evident by the diversification of investment products, companies, and tools we use to pursue our clients' goals and objectives. Just as a hammer is not the right tool for every job, there is no one investment product that is a perfect fit for all of your financial needs.
We will work very hard to gain a complete understanding of what you are trying to achieve, and only after that will we make specific recommendations. Our clients have a full understanding of the benefits and costs of each and every one of our recommendations. Through this independent approach, we earn our clients' trust and appreciation.
Diversification does not assure a profit or protect against loss in declining markets, and diversification cannot guarantee that any objective or goal will be achieved.
With help from our various analyst partners, the McCarthy & Cox Research team employs a due diligence process when creating our model portfolios and selecting funds for inclusion or removal. The process has three steps: (1) Portfolio Construction, (2) Investment Selection, (3) Ongoing Monitoring, Rebalancing and Reallocation.
Step 1: Portfolio Construction
In constructing our tactical investment portfolios, many factors are considered, including current domestic/international economic and investment climates, as well as the upside potential versus the downside risk for each available asset category.
Step 2: Investment Selection
An initial quantitative screen is used as a starting point for further research. The purpose of the screening process is to focus on investments that meet objective criteria and have provided consistent, risk-adjusted returns. After screening, the investments options are evaluated by applying a risk-adjusted scoring system to the remaining investment choices. In addition, investments are evaluated based upon absolute performance, peer and benchmark relative performance, and style consistency. Careful attention is paid to the five Ps of manager and investment analysis: philosophy, process, people, price, and performance.
Step 3: Ongoing Monitoring, Rebalancing, and Reallocation
The McCarthy & Cox Select portfolios are monitored on an ongoing basis to determine if they are meeting their investment objectives. The portfolios are evaluated based on absolute and relative performance, risk tolerances, attribution analysis, and style analysis. As portfolio characteristics and asset weightings drift beyond target levels, the portfolios will be rebalanced to keep asset weighting in line with objectives. As investment and economic climates change, asset categories may be added or removed from the portfolio.