Overview
The Perspective Group’s portfolios are built using a process and methodology that starts with our values. These are:
Authenticity: Each portfolio that we design is as true to our strategy as life allows. We create portfolios to help people connect with investments in a way that resonates with them and communicates to them what they are investing in.
Transparency: Our portfolios are simple and clear. We build these either using individual stocks, exchange-traded funds (ETFs), or mutual funds. For those who want the best in transparency, using our portfolios that are built with either stocks or ETFs allows you to see which companies you are investing it.
Adaptability: We build our portfolios to allow for adaptability. We do not have minimum holding periods or create rules that would limit our ability to change to manage the days ahead.
Sustainability: Our portfolios are built to pursue long-term performance. And, by doing so, it helps you decide which portfolio is tailored for your situation. In addition to a portfolio that is built for the long term, many of our portfolios also include the use Morningstar’s globe rating system which we will revisit later.
Optimism: Investing in the long term works best if one is optimistic about the future. A pessimist may be tempted to change course at the next correction (which stock markets tend to do about every 18 months). A correction is defined as a 10% decrease from a recent higher point. They are as predictable (in concept vs. timing) as a blizzard and often it takes the optimist to see through the storm and know that the sun will soon return.
Our eleven portfolios incorporate these values. In broad terms, we have three portfolios that are designed for those who have a longer timeframe to invest and who are very comfortable with the day-to-day ups and downs of the market. Next, we have four portfolios that are built for the long-term investor, but who may also want to have more stability through day-to-day fluctuations. To help aim for this result we increase diversification through a wider array of investments and trading techniques. Lastly, we have four portfolios for those who may have an investment time frame of less than ten years. While they may in fact choose to hold these investments longer than ten years, they seek greater predictability of current income and added stability of principal versus our other longer-term investors.
Process
Constructing portfolios this way takes care and patience. It begins with a blank slate. Next, we evaluate the public market of traded securities to determine which combination of holdings will help us pursue the objective.
Once built, we maintain the portfolios through two concurrent processes.
Ongoing oversight
We maintain our portfolios using the Morningstar Workstation software platform that allows us to monitor the holdings on an ongoing basis. By doing this, we keep a close eye on the health of the investments and we can quickly adapt if conditions warrant. We also monitor the individual stocks’ performance using Investors Business Daily, Dividends.com, and Yahoo Finance to name key resources.
Systematic reviews
Each quarter we review the individual holdings (stocks) of our portfolios. And, every six months we conduct an intensive review of our ETFs and mutual fund holdings. Individual stocks report earnings quarterly and after each quarter we review the results and selectively listen, or participate, in quarterly conference calls. From our experience, hearing the strategy and plans from leadership often provides more value than the numbers.
Disclosure:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Stock investing involves risk including loss of principal.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.
Investing in mutual funds involves risk, including possible loss of principal. Fund value will fluctuate with market conditions and it may not achieve its investment objective.
ETFs trade like stocks on stock exchanges and are subject to investment risk. Their market value can fluctuate, and they may trade at prices above or below their net asset value (NAV). Upon redemption, the value of ETF shares may be worth more or less than their original cost. ETFs carry additional risks such as not being diversified, possible trading halts, and index tracking errors.
Investors should consider the investment objectives, risks, charges and expenses of mutual funds and Exchange Traded Funds carefully before investing. The prospectuses and, if available, the summary prospectuses contain this and other important information about mutual funds and Exchange Traded Funds. You can obtain a prospectus and summary prospectus from your financial representative. Read carefully before investing.