Our Investment Approach
We believe that over the next two decades investors will experience higher interest rates, higher tax rates and lower earnings growth rates than were experienced in the previous two decades. We designed our Structured Leaders strategy to capitalize on these trends and include the following characteristics:
- Consistent dividend growth. Companies with a strong history of dividend growth have consistently delivered superior investment results.
- Global markets. Companies in global markets tend to be less sensitive to local business cycles.
- Economic moats. Companies in industries with high barriers to entry by new competition typically have greater pricing power than in industries with low barriers.
- Shareholder-friendly management. Firms that have a history of share buybacks, dividend growth and controls on executive compensation have a history of superior performance.
- Low expenses. Fees, expenses and taxes all reduce investment returns, which can have dramatic adverse effects on investor’s portfolios over the long run.
Annual planning meetings keep us in tune with the tax needs of our clients. We routinely harvest gains and losses in the separately held equity portfolios, minimize short-term taxable capital distributions through investments in exchange traded funds and reduce taxable income with tax-free bonds.
Asset allocation is achieved through municipal bonds and exchange traded funds covering real estate, international markets, emerging markets, small cap stocks and commodities.