We employ what is commonly referred to as a core-satellite investment management approach. This allows us to create an individualized investment scheme in an efficient, cost effective manner. What is a core satellite investment approach and how do we utilize this approach for our clients?

Core – The objective of the core is to focus on reducing investment expenses, minimizing tax cost, maintaining diversification and letting the capital markets do the majority of the heavy lifting for client portfolios. These investments tend to be broad market, low cost index funds that aim to “meet the market” rather than “beat the market.”

Satellite – The objective of the satellites is to focus on achieving a specific investment objective and is tailored to each individual client’s specific situation. These investments commonly include factor based investments, actively managed mutual funds, and tactical investments as market conditions warrant.

We then use our expertise to ensure that right “satellites” are within the right investment vehicle for the particular client. For example, a retiree in need of income may have an investment factor focusing on high dividend income within their IRA. Alternatively, this investment approach would not be appropriate for a small business owner who is in a high tax bracket and needs to minimize the tax impact of investments held within their investment account.