HHM Wealth Advisors has 3 basic beliefs about managing client portfolios.
- Diversification helps stabilize a client’s path toward their goal and objective
- Earnings drive stock prices over longer periods of time
- Bonds provide current income for retirement and stability for peace of mind
HHM Wealth uses an investment management committee to manage portfolios. While each client’s advisor has the ability to deviate somewhat from the committee’s decisions to better serve the client’s goals and objectives, HHM Wealth Advisors believes the use of an Investment Committee helps maintain a prudent, stable thought process toward asset allocation, investment decisions and security selection. Portfolios generally consist of the following:
- Institutional Mutual Funds (IMFs) are selected thru a rigorous process that includes factors such as a review of managements’ propensity to preserve capital, reduce costs, and long-term performance track record.
- ETFs (exchange traded funds) are used to provide wide diversification at a very efficient price, or to pinpoint exposure to a specific market sector.
- Alternative Investments to reduce market volatility and enhance return.
- Individual stocks & bonds when unique opportunity exists or client needs necessitate.
Using a list created by the investment committee and other resources, the client’s primary advisor will create the portfolio with investments designed to meet the client’s investment goals and objectives. Factors that can help determine the list of mutual funds and exchange-traded funds can include:
- Expense ratios
- Morningstar® and other ratings
- Peer group performance
- Consistency of returns
- Standard deviation and other volatility measures
- Manager tenure and/or track record
- Investment philosophy
- Up and down market capture ratios
- Style drift
- Turnover ratios
In cases where the client’s needs are better suited by utilizing individual stocks and bonds, the advisor follows the same analytical process in selecting these securities.