Portfolio strategy is the road map we use to execute a long-term program of investment in capital markets. Client risk and return are noted and matched to a fixed set of risky and less risky assets. SCM built the road maps below with varying degrees of the risky assets to fit your profile. Other variations are available. Strategy differences include asset classes, foreign exposure and issue selection.
Strategies
Balanced Growth
The Balanced Growth strategy invests in large- and mid-market size stocks for growth and inflation hedging. A smaller bond part is used for risk control, current income and a reserve. Long-term target mix is 65% stocks to 35% fixed income including cash, 20% foreign and a rebalance range of +-2%. Similarly, the stocks are divided by sectors. Similarly, the holdings are fully invested at all times.
Capital Builder
The more volatile Capital Builder invests in large- and mid-market stocks for growth. The stocks are grouped by sectors. A small bond component is used for risk control. Long-term target mix is 80% stocks to 20% fixed income including cash, 23% foreign and a rebalance range of +-2%. Similarly, the holdings are fully invested at all times.
Diversified Aggressive
The most volatiley, Diversified Aggressive, fully invests in quality stocks with an emphasis on mid-market issues and grouped by sectors. Long-term target mix is nearly 100% stocks with a 25% foreign. A small cash position is kept on hand.
Moderate Risk Growth
With a less than average risk profile, the Moderate Risk Growth Invests equally in stocks and bonds. It uses a large- and mid-market stock part for growth and inflation hedging and a bond component for risk control, current income and reserves. Long-term target mix is 50% stocks to 50% fixed income including cash including a 17% foreign and a rebalance range of +-2%. Similarly, the stocks are grouped by sectors. Similarly, the holdings are fully invested at all times.
Income Builder
Additionally, Income Builder invests mainly in fixed income with a smaller equity section serving as an inflation hedge. Long-term target mix is 35% stocks to 65% fixed income including cash and a rebalance range of +-2%. The stocks are grouped by sectors and there is small foreign. Similarly, the holdings are fully invested at all times.
Value Preservation
Value Preservation is Invested in primarily in cash and fixed income with a very small equity part as inflation hedge. Long-term target mix is 25% stocks to 55% fixed income and 20% in cash with a rebalance range of +-2%. The stocks are grouped by sectors and there is minimal foreign. Similarly, the holdings are fully invested at all times.
Fixed Income or Cash Only
Finally, Fixed Income Invests primarily in cash or fixed income only This plan is used as reserve fund and generally is not charged a fee.The portfolios are fully invested at all times.
Therefore, check out SCM how uses these road maps in working with guidelines or how research is used to aid issue selection. Visit our portfolio management services page to see how we use these road maps in the overall process. Finally, work with SCM and let us take the lead based on these road maps.
