Managed Portfolio Investing
Our unique style of Managed Portfolio investing brings some advantages of institutional scale investing directly to an individual investor. The concept may be more easily characterized by what it is not.
A Managed Portfolio is not a mutual fund. In a mutual fund, shareholders don’t typically see the individual holdings selected by the fund managers, except perhaps in an annual report. The value of the securities held by the fund are calculated daily and ‘unitized’ into a single share price. In effect, every investor buys into the fund’s allocation completely every time shares are purchased. In a managed portfolio, each individual account will reflect the specific securities holdings and buy prices unique to the history of that account.
A Managed Portfolio is not simply an individual portfolio. Instead, model allocations are developed at a macro level to retain certain targeted portfolio characteristics. As an individual investor enters a managed portfolio, the allocation targets serve as a road map, but it is a highly individualized road map. Purchases into the various holdings within the model are made on an individual investor level to reflect the current market conditions at the time of entry.
Managed Portfolio investing is not a passive buy-and-hold approach. By grouping large numbers of individual investors within structured model portfolios, every investor is in a position to benefit from allocation adjustments made at the macro level at a small fraction of typical expenses. Advanced technology, omnibus accounts, and account aggregation allow hundreds of individual investors to form the purchasing power of one larger investing entity.
A managed portfolio can, and likely will, contain mutual funds, individual securities, or even ETFs (exchange traded funds), but it is in the careful blending of the components in a model allocation, and the on-going management of those holdings, that we seek to deliver maximum value to the individual investor.