Our Services
Diversification and Discipline
To build and preserve wealth, you need an asset manager who can help you:
- Set realistic expectations
- Manage investment assets that match your goals and tolerance for risk
- Effectively translate financial market circumstances and developments into an appropriate portfolio investment structure
- Objectively evaluate and communicate investment results
- Provide a suitable review process to assure client feedback
The optimal investment mix
While TFC portfolios are customized to meet each client's specific needs, we follow a common, systematic investment process that draws from the best insights of our financial market research and the collective experience of TFC's Investment Committee. Recognizing that strategic asset allocation is responsible for a large portion of the variability in a portfolio's investment results, we begin by developing an optimal Investment Policy Statement and asset mix for each client.
TFC has refined a research process that relies on quantitative tools with a qualitative overlay to identify the most suitable managers and investments. We typically use no-load mutual funds because they offer cost-efficient and diversified exposure. For domestic large-cap equities, we routinely use low-cost index funds from Vanguard and Dimensional Fund Advisors (DFA).
TFC uses a disciplined investment approach in constructing widely diversified portfolios. Within the equity portion of a balanced portfolio, we build positions in domestic large-cap and small-cap equities, developed and emerging market international equities, including strategic allocations to natural resources and global REITs (real estate investment trusts). When client circumstances warrant, such as in taxable accounts that hold blue chip stocks with a low cost basis, TFC will manage core stocks in a tax-sensitive manner. We then add a series of mutual fund holdings around the core stocks to enhance diversification and complete the overall equity allocation.
Fixed income securities (e.g., tax-exempt bonds, U.S. Treasury notes, etc.) are an essential component of all balanced portfolios, serving as a valuable source of diversification and portfolio volatility moderation. Typically, high quality, short duration bonds are emphasized. We closely monitor interest rate sensitivity and diversify across bond sectors to improve risk-return characteristics. Depending on your situation, we build a fixed income portfolio comprised of individual bonds or bond mutual funds, using either taxable or tax-exempt instruments.
We regularly assess investment results at the portfolio and individual holding levels, and carefully track portfolio risk characteristics. TFC clients receive quarterly reports that illustrate risk-adjusted investment returns after all fees - the real measure of performance. Results are compared against the appropriate asset class, investment style, and blended policy performance benchmarks.