At Noyes Capital we work with portfolio optimization software and our many years of market experience to design portfolios that strive to meet your risk tolerance profile and financial needs. While there is always real risks in any investment portfolio, there are clear techniques that can help increase your expected return and/or reduce your portfolio’s risk.
The four concepts that we consider in every portfolio design are:
1) Keep your fees and transaction costs low
The power of investment compounding is amazing. We strive to reduce the management fees in each of your mutual fund, ETF’s and other investments. We will never purchase an investment with a load fee, hidden charge or trailing fee. We strive to analyze each investment to ensure that the manager’s performance warrants the fee they charge. We want to make sure that you are getting value for your money.
2) Place your investments in the proper vehicles for tax efficiency
Your after-tax portfolio return can be increased by placing stocks, bonds, mutual funds and ETFs in the proper investment account. Certain investments are better suited for IRA’s and 529’s instead of taxable accounts. This may require customized investment selection to best fit your needs. Tax efficiency is extremely important over time, including holding investments for long-term capital gains and low tax rate dividends.
3) Maintain portfolio diversification to reduce combined volatility
When we talk about diversification in a stock portfolio, we’re referring to the ability to reduce risk exposure by investing in various companies across different sectors, industries or even countries. This should reduce the price volatility of your portfolio since not all industries and sectors move up and down at the same time or at the same rate. We strive to build portfolios with more consistent overall performance.
4) Use a forward looking asset allocation
We believe in the business cycle and the resulting bull and bear markets. We deploy strategies over the business cycle that use flexible asset allocation and portfolio optimization to strive to generate superior results over time. This forward looking investment approach requires substantially more effort than the so-called “buy and hold” strategies used by many securities firms and advisors. We use our investment experience and discipline to strive to maximize and protect investment returns during all stages of the investment cycle.
