Your financial concerns are quantified in terms of when they must be met and what amount is required. Our graphic representation of your situation will monitor whether you are behind target, on target, or ahead of target in reaching your goals. Are you taking unnecessary risks? Are you investing too little or sacrificing too much? Our service will show you the probability of reaching your financial goals, under various scenarios.
How Your Investments Are Managed
We work with you to establish your personal investment goals and risk tolerance, then design your customized portfolio(s). You have the option to review the portfolio and discuss its construct before it is implemented.
The Selection Process
Balance and Diversification
It is critical that, consistent with your risk tolerance, your portfolio be diversified among various asset types and investment styles. To that end, consideration is given to stocks, both domestic and foreign, and fixed income issues, including corporate and/or government bonds.
Our selection process for common and preferred stocks is often referred to as “bottom up” investing, in which the basic fundamental attractiveness of individual companies, rather than stock market or sector levels, is the primary consideration.
Over 10,000 issues are regularly screened to determine if they meet our balance sheet and income statement requirements for sound fundamental values that are greater than their current market price, with an emphasis on dividend growth.
We have established price, volume, and time indicators that have a high correlation in determining whether an issue is under accumulation or distribution. We apply these factors to the fundamentally attractive list to determine which issues are buy candidates and which are sell candidates.
Fixed Income Selection
Fixed Income issues, including corporate, government, and municipal bonds, or exchange traded funds representing such issues, are selected based on your risk tolerance, cash flow requirements, and marginal tax rate. Diversification among fixed income investments is based on interest rates, the slope of the yield curve, and quality spreads at the time funds are available for investing.
Your portfolio performance is measured relative to what you have established as the rate of total return necessary to enable you to reach your goals with the least attendant risk. We take pride in the fact that Saint Louis Investment Advisors is not typical in this regard. There is little value for the serious investors in market performance figures or charts that are employed as marketing tools by most mutual funds and money managers, as they do not have relevance to your personal goals and risk tolerance.
Transparency is an important part of our service. It is important that you be aware of not only of what is in the portfolio, but our rationale for those holdings. You receive detailed portfolio reports monthly, accompanied by a letter that discusses subjects of importance for your portfolio.
Your portfolio manager is available to meet as often as you choose to personally review the portfolio and address any questions or concerns you might have.
We’re as Close As The Phone
Call us anytime you have a question or concern. You will talk with your portfolio manager, unlike many firms that rely on clerical or sales staff to handle questions.
At the end of the third quarter you receive a report of your portfolio gains and losses and we will discuss with you actions that should be considered before year-end to minimize your tax liability.
Copies of your portfolio reports are also available for whomever you designate; investment broker, accountant, attorney, etc. (Our confidentiality policy requires that we obtain authorization from you in order to provide third parties with any of your account information.)