Our Investment Management Principles
We are life-long students, passionate educators and global thinkers.
That means we take an academic, functional and real-world approach to managing money. Each client receives a customized Investment Policy Statement, detailing an appropriate asset allocation and framing how we professionally manage the client’s assets.
As global markets, regulatory environments, and clients evolve, we make tactical changes to ensure we stay the course outlined in the client’s financial plan.
We invest deliberately,
with a purpose
Planning takes time, but investing without proper planning is meaningless. We work with every client to create and manage a tailored Investment Policy Statement that matches the client's needs, goals and mission with its investment objectives and constraints. Those inputs are the sole drivers of our recommendations, ensuring that investment decisions are deliberate and purposeful.
No client recommendation is the same.
Globally balanced, well diversified portfolios reduce risk
History has demonstrated that risk and return are related, and investors receive compensation in proportion to the risk they take. We employ the Nobel Prize fundamentals of Modern Portfolio Theory, which suggests investors can reduce risk and may increase return through the use of globally balanced, well diversified portfolios with exposure to various asset classes. Individual asset classes move in random, unpredictable patterns and no asset class, size or style is always the best performer. Chasing performance leads to uncompensated risk and volatility that cuts into portfolio growth. The globally balanced approach allows investors to “diversify away” the uncompensated risk inherent in stand-alone assets and singular asset classes, and "smooth” long-term performance.
It’s not about timing the market, but having time in the market
Markets work. Speculation is futile. Rather than attempting to chase trends, instincts and emotions, we employ a long term investment discipline that is academically sound and best positions our clients to take an appropriate amount of risk to achieve their goals. Asset allocation, not "stock-picking", is the primary determinant of long-term investment performance.
Reducing costs is the surest way to enhance long-term returns. As a client advocate, we take pride in being able to offer access to an unbiased, open-architecture platform of investment solutions. We invest the time to monitor the relationship between fund expenses and returns, advocate for lower overall trading costs with the custodian(s), and mitigate negative tax implications that drag down investment performance.
Investing involves risk and you may incur a profit or a loss. Please carefully consider investment objectives, risks, charges, and expenses before investing.
Advisory services are offered through McDonnell Wealth Management, LLC dba McDonnell Capital Management (”McDonnell Capital"), a Registered Investment Adviser.