At MOSAIC Wealth Partners, we develop investment management plans that fit each client’s particular goals, needs, and situation. In crafting these individual plans, we follow a consistent investment philosophy that is designed to target a rate of return that fits your specific needs while controlling risk and volatility. We implement this strategy through a Core – Satellite investment program that includes diversification through the use of varied traditional and alternative asset types, application of relative strength and technical analysis to determine areas of strength in the markets, and utilization of options strategies to hedge against downside loss.
We construct the Core portion of this program by dividing your investment allocation into four broad-based sections. The amount allocated to each of these sections can vary among clients since each person’s particular needs, tolerances, and objectives can differ, but the Core portion of each client’s allocation contains exposure, to some extent, to each of these segments.
The first Core category provides exposure to liquid equities. These positions can include mutual funds, exchange-traded funds, and/or individual stocks. They also can include domestic stocks and/or international stocks, as well as larger, mid-sized, or smaller stocks, but, through a combination of some or all of these vehicles, we invest a portion of Core assets in equity-based positions.
The second Core category is also equity based, but, for this portion of your assets, we employ vehicles that provide additional hedging and/or the potential to minimize downside loss. These positions might include vehicles known as structured notes or possibly the use of options. Either way, this segment of your Core allocation is designed to provide exposure to the return potential of equities while offering a means to try to control the overall risk and volatility in your portfolio.
Third, we also allocate a portion of your Core assets to fixed-income vehicles. Much like the first Core category, these positions can include mutual funds, exchange-traded funds, preferred stocks, and/or individual bonds. They also can incorporate various types of bonds with different investment grades. The focus in this segment of your Core allocation, however, is on varied fixed-income investments.
Finally, we allocate to a fourth Core segment of alternative investments that, historically, have produced returns and/or volatility that are minimally correlated to that of more traditional stock- and bond-based investments. This category can include mutual funds, exchange-traded funds, real estate investment trusts, business development companies, currencies, and/or commodities. Positions in this Core allocation grouping also can include alternative investment strategies that invest in more traditional vehicles, but do so in a manner that produces performance and/or volatility that has a low correlation to that of these same vehicles when accessed otherwise.
We regularly review the performance, risk, and volatility of the investment markets, and we closely follow trends and developments in the domestic and global economic landscapes. Using this information, we adjust the holdings in your allocations to each of these four Core segments. Additionally, we also use this data along with our relative strength and technical analysis of the investment markets to fill out your Satellite holdings. In particular, we try to identify areas of particular strength or weakness in the markets at any given time, and we then increase or decrease your exposure to these assets through supplemental, Satellite positions branching off of your Core holdings.
When all of these positions are considered together, we create a broad-based, diversified group of assets that aims to produce a return targeted for your particular situation while controlling volatility along the way. And, by regularly monitoring the investment markets and the global financial picture, we are able to update and modify these holdings as conditions change.