We also believe that successful long-term investing requires patience, focus, and diligent attention to the management of controllable factors such as fees and taxes. If unchecked, these elements can erode away headline returns, and put achievement of client financial goals in serious jeopardy.

To best serve your investors, an investment philosophy should be aligned with, and directed toward, delivering meaningful financial outcomes for investors. Manage investments with purpose: to meet a future financial obligation or aspiration.

After decades of experience evaluating, monitoring, and managing other investment managers, in our view the tenets of a solid investment philosophy include:

  • Insight-driven inputs
  • adhering to a long-term perspective
  • applying control where possible
  • being innovative with a willingness to adapt
  • developing the ability to manage risk beyond volatility, and
  • adopting a forward-looking view rather than relying on the recent past when formulating capital market assumptions.

In our next contribution, we will explore each of these elements in more detail, and describe how to construct a unified whole in pursuit of client investment objectives.

Palladiem is the advisor-centric investment firm; we provide targeted support and insight to advisers.  We manage diversified, multi-asset class investment strategies designed to meet a wide range of investor risk/return objectives, supported by our proprietary investment process, forward looking views, capital markets analysis, and alternatives and investment manager research.

This article was contributed by Palladiem, a participant in the ETF Strategist Channel.

Sources:

1.Valuations Matter – Even for Millennial Investors”, Real Investment Advice, February 23, 2017.