Click to watch George discuss Market Volatility.

Our Balanced strategy seeks to provide long-term capital appreciation and principal protection.  Portfolios are managed using a total return investment philosophy.  They contain up to 75% in equities, with the remainder in high quality fixed income securities.  We determine the specific allocations based on:

    • Overall economic growth prospects;
    • Our outlook on interest rates; and
    • Comparative rates of dividend versus interest income.

The equity component is typically concentrated in 30 to 50 blue-chip stocks which are diversified across industries and sectors.  Each portfolio is individually managed using an active buy-and-hold approach.  We use market volatility to opportunistically buy and sell over time.  Our discipline of making long-term investments in high-quality companies reduces portfolio turnover.  As a result, the equity component typically experiences less than 25% annual turnover.

The fixed income component invests primarily in investment grade corporate bonds.  Investment decisions are based on our fundamental analysis of each issuer.  We manage for total return, which includes yield to maturity and capital appreciation.

We adjust each portfolio’s maturity structure based on our interest rate outlook. When interest rates rise, we concentrate in shorter-term bonds to protect principal; when interest rates have peaked, we reposition to longer-term bonds for income and capital appreciation.

This strategy is best suited for intermediate to long-term investors who seek capital appreciation and income with reduced risk.

Investing in securities involves risk of loss that clients should be prepared to bear. Click here for a description of specific risks related to our investment strategies.