Investment Philosophy and Portfolio Development

Focused Wealth Management believes that planning for the pursuit of financial success includes applying core investment principles: portfolio diversification, risk management and disciplined long-term investing. Our fundamental investment theory is: Risk + Time = Potential Reward. Therefore, we carefully consider a combination of both the client’s tolerance for risk and the amount of time available to invest the portfolio. Focused Wealth Management utilizes a clearly defined philosophy which provides a disciplined investment strategy. We feel when determining an asset allocation, the last ten years of market data history is reviewed with the mindset that the last decade is more relevant to the anticipated decade, as opposed to using the entire history of the market. Furthermore, we rebalance our strategies according to current market conditions, but never steer away from our original foundation that accounts for the combination of risk and time.

The Focused Wealth Management Committee manage our investments over a long-term time horizon, while being mindful of the historical context of the markets. Our belief is that the portfolios we recommend are never the starting point of our investment process you are. Before a single investment is considered, we perform a detailed analysis of your unique requirements. We believe that only by gaining a comprehensive understanding of your risk tolerance, time horizon, liquidity and income needs, return requirements and investment preferences can we strive to design the optimum portfolio solution for you. We will then create an investment policy statement to recommend a specific asset allocation and propose investment solutions aimed at pursuing your goals.

Our team feels asset allocation is the most important factor in portfolio performance. Although the mix between equities and fixed income, broadly defined, is typically the most important asset allocation decision, we believe proper diversification requires that a portfolio be allocated among several distinct asset classes including alternative investments, when suitable. Within the broad equity asset class, examples of “sub-asset classes” would include large capitalization equities, small capitalization equities, domestic equities and foreign equities. Within the broad fixed income asset class, sub-set classes vary according to maturity/duration (e.g. short, intermediate, long-term); type of issuer (e.g. government, corporate, municipal); and credit quality.

Focused Wealth Management believes it is imperative to control risk in investment portfolios because properly implemented risk controls are typically designed to reduce portfolio volatility and strive to potentially improve overall cumulative returns. We feel having the appropriate solutions available at the right time is essential to pursuing financial success.

Investments in model strategies may expose the investor to risks inherent within the model and the specific risks of the underlying investment directly proportionate to their allocation. All investments involve the risk of potential investment losses.

Past performance does not guarantee future results.

Asset allocation and diversification do not guarantee a profit or protection from losses in a declining market.