Investment Policy Statement

The purpose of this investment policy statement (IPS) is to assist you, the client, in effectively supervising, monitoring, and evaluating your investment portfolio. Your investment program is defined in the various sections of this IPS by:

1. Stating in a written document the objectives, and guidelines for the investment of the Client's assets.
2. Encouraging effective communications between the Client and all parties involved with the investment management decisions.
3. Establishing formal criteria to select, monitor, evaluate, and compare the performance results achieved by each investment option on a regular basis.
4. Complying with all applicable fiduciary, prudence, and due diligence requirements that experienced investment professionals would utilize.

The Investment Advisor serves as an objective, third‑party professional to assist the Client in managing the overall investment process. The advisor is responsible for guiding the Client through a disciplined and rigorous investment process, consisting of:

1. Preparation and maintenance of this investment policy statement.
2. Selecting sufficient asset classes of different and distinct risk/return profiles so that the portfolio can be prudently diversified.
3. Prudently selecting investment options.
4. Disclosing and accounting for all investment expenses associated with the Portfolio.

All models are invested in no-load or load waived mutual funds or Exchange Traded Funds (ETF).  In general, we intend to maintain a reasonably diversified portfolio within the scope of each model’s objective including the use of alternative asset classes.  We will, however, also overweight sectors and assets classes that we believe to be in favor in the current market environment.  Investment decisions will be based on a variety of factors including fundamental analysis, market sentiment, trend analysis and technical analysis. 

While no investment process can guarantee against risk of loss, our overall investment philosophy is to be able to adapt to changing market conditions and manage the risk to portfolios through diversification.  We do that by following a 3-step investment process.

1. We look at the economy and the markets from a macro-perspective to determine how much risk we believe is appropriate for each model given the current risk/reward profile.
2. We then decide what asset classes and specifically what individual investments we want exposure to and in what amount.
3. We monitor our models on a weekly basis. We implement, and update our model allocations on a quarterly basis. We may make changes to the models more frequently than quarterly if we believe necessary to adapt to rapidly changing market conditions.

The following are descriptions of our current investment parameters for each of our models.  We expect that these parameters may need to change over time as market conditions unfold and new information is available.

This model would only be appropriate for the most aggressive investors. Assets will be fully invested (except for 2% in cash) in whatever asset class we deem to have the highest growth potential with little to no regard for short term fluctuations. This model will also allow up to a maximum of 25% of the positions to be chosen by the advisor or client at their discretion.

The Growth model will on average maintain approximately 80% of the assets in equities and 20% in assets in what would be traditionally considered lower risk investments such as cash and fixed instruments.  This model will also allow up to a maximum of 25% of the positions to be chosen by the advisor or client at their discretion.

In this model we intend to maintain a target of approximately 60% of the assets in equities and 40% of the assets in what would be traditionally considered lower risk investments such as cash and fixed instruments. This model will also allow up to a maximum of 20% of the positions to be chosen by the advisor or client at their discretion.

This model will most resemble a balanced portfolio with a slight income bias.  It is our intent to maintain a target of approximately 40% of the assets in equities and 60% of the assets in what would be traditionally considered lower risk investments such as cash and fixed instruments.