Integra Capital Group - Model Portfolio Strategies

The collapse in the various capital markets have taught some valuable lessons for those willing to learn from them. In the past the mantra was to attempt to diversify away risk through static asset allocation. Investment advisors looked to a “style box” to guide investment decisions as well as dogmas like growth vs. value, domestic vs. international, and non-correlation through alternative investing. There was also an over-reliance on outsourcing actual investment decisions to third-party money managers like institutional mutual funds. The lessons learned are that advisors need to take a more active role in managing client money and to not rely on dogmas but rather solid fundamental and technical research. We also believe in the value of having a local, totally engaged money manager that you can easily communicate with. Looking forward, we have indentified five model portfolio strategies that account for various timeframe and risk requirements.

Low Volatility Income – This strategy seeks to reduce portfolio volatility by investing in short-term fixed income investments. This is suitable for those with a short timeframe for needing their capital or for those that are looking for an appropriate place to park their funds while waiting for opportunities to enter longer-term capital markets. read more

Management fee = 0.5% of assets under management.

Diversified Income – This strategy seeks to provide a higher relative income. This is accomplished by investing in a combination of high-quality bonds and preferred stocks, dividend paying equities, and other income producing vehicles. read more

Management fee = 1.0% of assets under management.