Asset Management
Philosophy and Implementation
Diversification
Funds are emphasized over individual securities. Funds have many categories, but the common theme is that investors pool money to purchase a broad array of individual securities. Funds can be actively or passively managed. Passive management generally means that the fund mimics an index such as the S&P 500 (Indexes cannot be invested into directly).
Investment Policy
We will recommend at least one of three model portfolios to manage the client's needs. The proposal is based upon a review of the client's unique facts and circumstances, our analysis of the current economic climate, and a thorough discussion with the client of the risk/reward characteristics of each choice.
Extensive Fund Research
We obtain research on the funds from a number of select sources. After carefully reviewing in-depth research and monitoring current economic forecasts, our planners choose the available appropirates funds from different investment categories. Our choices form a short list we call the “The Connors Group" Select List.”
Tactical Versus Timing
We believe it is extremely difficult to perfectly time an investment, moving completely in at a low price and then completely out at a high price. We do not attempt to implement market timing. There most certainly are occasions when valuations are skewed. Our portfolio management discipline can allow for tactical over-weighting or under-weighting of an asset class when we feel that the risk associated with that class is unusually high (underweighted) or unusually low (overweight).
Financial Markets are Constantly Evolving
Financial markets evolve over time, and as part of our extensive fund research we monitor new areas/classes of investments that become available. We will consider the use of any investment class that offers a chance for enhanced return/risk contribution to our portfolios.
Investment Policy Statement
Every single portfolio under management uses an IPS as a guiding statement for investment direction. An asset allocation model, which sets the balance among specific types of investments, follows naturally from carefully drafted IPS. All of our clients will be well-diversified among:
-Asset Classes
-Style Categories
-Sector Weighting
-Maturity, Duration, and Quality
Cost
Cost efficiency is important and can be a factor in long term performance. We strive to be cost-efficient in a number of ways. One is through awareness of our client's income tax situation: managing purchases and sales with the income tax ramifications in mind. Another is by assessing a fund's expense ratio in the selection process.
Communication
We offer in office visits for reviews and planning issues. Statements are delivered monthly, either though the mail or via online delivery. LPL offers anytime account access via their online system Account View, and clients are able to choose paperless delivery for many items. Connors Group's office is open from 8 A.M. to 5:00 P.M. daily (Fridays until 3). For clients located outside of Southern California, scheduled telephone appointments are always available.