As CERTIFIED FINANCIAL PLANNER™ professionals and independent investment advisors, we offer our clientele the financial confidence of knowing that we only make investment recommendations that are in our clients' best interest. This is evident by the diversification of investment products, companies, and tools we use to pursue our clients' goals and objectives. Just as a hammer is not the right tool for every job, there is no one investment product that is a perfect fit for all of your financial needs. We will work very hard to get a complete understanding of what you are trying to achieve and only after that will we make specific recommendations. Our clients have a full understanding of the benefits and costs of each and every one of our recommendations. Through this independent approach, we earn our clients' trust and appreciation.
Tactical Asset Allocation Model Portfolios
This proprietary investment platform is available to clients of McCarthy & Cox through Commonwealth Financial Network®'s
fee-based platform, Preferred Portfolio Services (PPS). Each client holds a selection of underlying securities, including open-end mutual funds and/or ETFs, in an asset-allocated portfolio. Every M&C Select account consists of a selection of underlying securities with exposure to a varying percentage mix of asset classes, including exposure to domestic and/or international fixed income and equity asset classes, as well as alternative investment asset classes, such as commodities and managed futures.
Advisors assist clients in matching risk tolerance, time horizon, and investment objectives to these tactically managed portfolios. M&C Select utilizes Commonwealth's in-house Research team's expertise, experience, and resources to create a consistent, well-thought-out methodology that is rigorous in nature but receptive to client needs. The result is a series of allocation models that seek to provide consistent, long-term, risk-adjusted returns for investors across the risk/return investment spectrum.
With help from our various analyst partners, the McCarthy & Cox Research team employs a due diligence process when creating our model portfolios and selecting funds for inclusion or removal. The process has three steps: (1) Portfolio Construction, (2) Investment Selection, (3) Ongoing Monitoring, Rebalancing and Reallocation.
Step 1: Portfolio Construction
In constructing our tactical investment portfolios, many factors are considered including current domestic/international economic and investment climates and the upside potential vs. the downside risk for each available asset category.
Step 2: Investment Selection
An initial quantitative screen is used as a starting point for further research. The purpose of the screening process is to focus on investments that meet objective criteria and have provided consistent, risk-adjusted returns. After screening, the investments options are evaluated by applying a risk-adjusted scoring system to the remaining investment choices. In addition, investments are evaluated based upon absolute performance, peer and benchmark-relative performance and style consistency. Careful attention is paid to the five P's of manager/investment analysis: philosophy, process, people, price, and performance.
Step 3: Ongoing Monitoring, Rebalancing and Reallocation
The M&C Select portfolios are monitored on an ongoing basis to determine if they are meeting their investment objectives. The portfolios are evaluated based on absolute and relative performance, risk tolerances, attribution analysis and style analysis. As portfolio characteristics and asset weightings drift beyond target levels, the portfolios will be rebalanced to keep asset weighting in-line with objectives. As investment & economic climates change, asset categories may be added or removed from the portfolio.
McCarthy & Cox, Retirement & Estate Specialists LLC.
With offices in: Marysville | Dublin