Personal Wealth Strategies
At RoundAngle Advisors, our approach to managing our client’s assets is based on each individual’s specific risk tolerance and financial goals. Once these investment objectives and individual risk tolerances have been communicated and understood, we invest in what we call a Foundation/Opportunity Approach. Beyond this approach, we also offer clients who fit the investment and risk requirements various model portfolios and fixed income allocations. A brief description of some of our investment strategies are listed below.
Foundation & Opportunity
The Foundation allocation of our clients’ portfolios makes up the “base” of their asset allocation and is what we consider to be the “cornerstone” of each portfolio. The Foundation allocation is based upon our global outlook for the economy, interest rates, and corporate earnings. While the investments in this allocation are monitored closely on a day-to-day basis, daily news events or market activity will typically not result in changes to these investments as these are based on our longer-term views.
The Opportunity allocation makes up a smaller portion of the portfolio and does exactly what Foundation does not. This component is designed to take advantage of market volatility. It will buy the S&P 500 on price weakness at specifically designated buy points and subsequently sell those holdings on a recovery to prior levels or new highs. This strategy will remain in place as long as our indicators do not show a recession in the coming 6 months.
Individual Equity Models
In addition to our base wealth management philosophy, certain client’s goals and risk tolerance may allow us to implement some of our thematic individual equity models. The common theme of our individual equity models is an ability and willingness of companies to return capital to shareholders through dividends and share buybacks. Additionally, we try to select companies with the ability to maintain or increase these dividends and buybacks over time. We have put in place specific screening criteria to screen the universe of stocks for those companies that meet our rigid requirements.
Fixed income is a vital part of a well-diversified portfolio. We use mutual funds, ETF’s, closed end funds, and individual bonds to complete this part of an allocation. We apply an equally stringent set of screening criteria when it comes to the selection of fixed income investments as we do with the equity component of the portfolio. With respect to individual bonds, it has been our general philosophy to stick to investment grade bonds within the corporate and municipal arenas.