While each of our clients has a unique set of objectives, our goal for all of them is to obtain above-average returns consistent with the preservation of principal. Experienced investors have long known that focusing on investment return, without due consideration for risk, involves potentially excessive losses. At Ryan Financial, our investment philosophy is keyed to the principal of active, risk-aware management.
Portfolio Construction at Ryan Financial
As investors, we believe that, over time, a diversified portfolio of common stocks, bonds and cash is the most prudent path to follow in building a client’s wealth at a rate that is above and beyond the rate of inflation and taxes, while minimizing portfolio volatility. There are times to be more heavily weighted in foreign securities vs. domestic securities, large companies vs. small, cyclical stocks vs. growth stocks, etc. Pursuant to our investment philosophy, we manage our clients’ portfolios according to one of our six proprietary asset allocation models, designed to achieve an appropriate risk-adjusted return based upon a client’s individual goals, time horizon and tolerance for risk. The six model allocations consist of Conservative, Conservative Plus, Moderate, Moderate Plus, Aggressive, and Aggressive Plus. While each model allocates investments to the various asset classes based upon a percentage of total assets, no two client accounts are alike, in that each has different holdings within a designated asset class. We regularly evaluate the appropriate allocations in light of current and predicted future conditions, making modifications as needed to maintain the timeliness of our clients’ portfolios.
Our investment committee meets weekly to review each of our holdings. Because we are independent, unlike many brokers and financial planners, we are under no pressure to invest in or keep any particular holding. We are guided by the belief that, in today’s world, no industry, market or economy can be viewed in isolation. It is only by understanding and analyzing events, trends and competitive pressures worldwide that prospects for various asset classes can be properly evaluated. Changes are considered and recommended by the committee and implemented in accordance with the strategy of the client.
Each quarter, after an account has been established for at least two full calendar quarters, reports are prepared for each client that outline the performance of the entire portfolio as well as each investment therein. Because we believe strongly that investment planning is a process, and not an event, our clients are entitled and encouraged to meet with us regularly to review their portfolios and discuss recommended adjustments in light of current market conditions.