Investment Philosophy

The Financial Independence Investment Committee, is comprised of five to seven experienced FIP members, meet regularly. They normally meet monthly but can meet more often if conditions require a meeting. We help build and monitor a series of asset allocation models to work toward maximizing total returns and yield for various levels or risk. The series of allocation models is designed to help meet our clients’ goals, objectives, time horizons and risk tolerances.

In building the models we consider funds that have outperformed their peer group and benchmarks over a reasonably long period of time. Generally we require a minimum of five years of performance. However, occasionally we will consider funds with a shorter record. In addition to absolute performance we take into account:

• Performance consistency, volatility, and downside risk, relative to the fund’s peer group and benchmarks over a wide variety of time periods.
• The investment manager’s ability to deliver consistent long-term results amid varying market conditions, including down markets. We prefer active management with an imbedded sell discipline to protect investments in volatile markets.
• The level of assets on which the record was based. We prefer funds that have maintained a moderate to large-sized asset base.
• Regarding expenses, we expect investment managers’ investment fees to be in line with or below industry averages.
• Portfolio turnover rates that are competitive and can contribute to more tax-efficient investing.

The fund family’s commitment of substantial resources to conduct research.

Average tenure of the investment professionals managing portfolios.