Investment Strategies
Once we have reviewed your financial situation, we will work closely with you to determine the appropriate asset allocation. After this step, we will help you select the investment portfolios to meet your needs.
Asset Allocation
We believe you should have choice in how you invest. We understand that needs, perspectives and goals vary from client to client. We offer the following asset allocation choices:
The allocation consists of stocks and cash with the goal of maximizing long term investment returns. Publicly traded real estate investment trusts (REITs) and commodity funds may also represent a small part of the portfolio. The strategy is designed for investors willing to accept significant short-term volatility in the pursuit of superior long-term investment performance.
The allocation predominately consists of stocks while fixed income represents a minority of the portfolio over time. Publicly traded REITs and commodity funds may also represent a small part of the portfolio. The strategy is designed for investors who are mostly oriented toward long-term returns but are seeking to reduce short-term account fluctuations.
The allocation should have a greater mix of stocks than fixed income over time. Publicly traded REITs and commodity funds may also represent a small part of the portfolio. The strategy is designed for investors who have a preference for long-term returns but are seeking to reduce short-term account fluctuations.
The allocation should have a near equal mix of stocks and fixed income over time. Publicly traded REITs and commodity funds may also represent a small part of the portfolio. The strategy is designed for clients seeking to equally balance long-term investment returns against short-term fluctuations.
The allocation predominately consists of fixed income while stocks represent a minority of the portfolio over time. Publicly traded REITs and commodity funds may also represent a small part of the portfolio. The strategy is designed for investors who are mostly oriented to reducing short-term account fluctuations while long term returns are a minor consideration.
The allocation consists of cash, short-term and intermediate term fixed income securities designed to generate income and have modest fluctuations. Short term and intermediate term fixed income securities generally have maturities of 0-5 years and 3-10 years respectively. The strategy is designed to accommodate client short to intermediate term cash needs and/or above average risk aversion.
Investment Portfolios
For clients in the Equity Plus, Moderate Plus, Balanced and Conservative asset allocations, you have choices in establishing to invest the equity and fixed income portions of your asset allocation. You may select one or more of the investment portfolios subject to our investment management implementation considerations.
Absolute Value Portfolio
The portfolio’s goal is to achieve investment returns consistent with the your absolute return objectives. The portfolio consists of 15-40 investment securities and cash equivalents. Publicly traded REITS and commodity funds may represent a small percentage of the portfolio. Because of the buying discipline to accumulate shares only when each investment security offers compelling investment return prospects, the Absolute Value Portfolio may hold larger cash equivalent positions than portfolios whose target is to be fully-invested. There are no restrictions on the levels of cash this portfolio may hold, and there is no time period in which this strategy must be predominately invested in equities. Holdings are expected to possess a strong balance sheet and be trading at an attractive discount to their worth based on cash flow generation prospects or asset value. US based companies are expected to represent a significant percentage of the portfolio. For more details on the portfolio's investment process, please see our ADV Part 2 Brochure.
Relative Value Portfolio
The portfolio’s goal is to achieve investment returns consistent with or greater than the S&P 500 over time. The Relative Value Portfolio consists of 15-40 investment securities, ETFs and cash equivalents. Publicly traded REITs and commodity funds may represent a small percentage of the portfolio. Because the goal is to perform in line with or greater than the S&P 500 over time, the strategy will be close to fully invested most of the time. Stock holdings are expected to possess a strong balance sheet and be trading at an attractive discount to their worth based on cash flow generation prospects or asset value. US based companies are expected to represent a significant percentage of the portfolio. The Adviser may invest in exchange traded funds (ETFs) to gain sector, industry, geographic exposure not obtained through individual stocks, REITs or commodity funds.
Passive Portfolio
Candor Asset Advisors™ selects broad market Exchange-Traded Funds (ETFs)* or mutual funds* designed to replicate broad market indices with the goal of achieving diversification, low expenses and minimizing the potential for under performance versus broad market benchmark(s). Investment choices may be made based on geography and investment security (e.g. stocks, government bonds, corporate bonds, REITs, commodity funds).
Enhanced Portfolio
Candor Asset Advisors™ selects enhanced index ETFs and/or mutual funds in an attempt to achieve superior risk-adjusted returns. Enhanced index ETFs and funds offer the opportunity to accomplish this objective via a diverse portfolio and in a cost-effective way. Investment choices may be made based on investment characteristics (large cap, mid cap, small cap; dividend focus for equities, issuer type or maturity focus for bonds), investment style (growth, core or value in equities), and business sectors.
For more information on asset allocation, our investment portfolios and the risks associated with investing, please refer to our ADV Part 2 Brochure.
*Mutual Funds, Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) and commodity funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.
Neither asset allocation nor diversification guarantee a profit or protect against loss in a declining market. It is a method used to help manage risk.