We’ll develop a personalized investment plan for you and then handle the day-to-day management of your portfolio.
Our Investment Management Principles:
Investing is a long-term endeavor requiring patience. Avoid chasing trends and returns.
Disciplined Research-Driven Process
Following a consistent, repeatable process grounded in principles leads to success over time.
Keeping an eye on costs can make a difference over time. Investment costs include internal expenses of mutual funds and/or ETFs, transaction costs and tax consequences.
Focusing on diversification and quality can reduce volatility as well as risk of not reaching investment objectives.
As opposed to choosing between active or passive investments, efficiently constructing portfolios among active and passive investment, combined with active portfolio decisions can add excess risk-adjusted returns over time.
We offer ongoing investment management services. Our typical cost is 0.50% of the value of your portfolio. For example, the cost for a household portfolio of $500,000 would be $2,500 a year. The cost for investment management services are in addition to the costs of our financial planning services.
At CGN Advisors, we believe that the key to successful investment management lies within a long-term approach and a sound consistent research driven process. We provide professionally managed portfolios focusing on risk management and controlling costs. We have developed three core strategies which we offer along with a tactical asset allocation strategy.
CGN Core Stock Portfolio
This strategy is intended to provide an active “Core” allocation to the overall stock market, with an emphasis on risk management and controlling costs. Portfolios are constructed with broad representation across economic sectors, market capitalization, and geographic region. Stock selection focuses on Growth at a Reasonable Price (GARP) and Dividend Growth, seeking high-quality, well-managed companies selling at attractive valuations with above average earnings and dividend growth.
Portfolios are generally fully invested (less than 5% cash), consisting of 35-50 securities and may include positions in mutual funds and/or ETFs when appropriate for client circumstances. In line with the long-term nature of the process, the goal is to provide superior risk-adjusted investment results over a full market cycle (typically 3-5 years) relative to the S&P 1500 Index.
CGN Core Bond Portfolio
This strategy is intended to provide a suitable level of current income with an emphasis on capital preservation while providing diversification to stock portfolios. Portfolios are constructed across maturity structure, sectors, and geographic regions. Bond selection focuses on relative valuation and investment-grade debt, primarily investing in government, corporate, and mortgage-backed securities.
Portfolios generally consist of 10-20 securities with weighted average maturity between three and seven years, an average credit quality of A or better, and may include positions in mutual funds, ETFs and cash when appropriate for client circumstances. Additionally, when client tax situations dictate, we build the portfolio with high-quality municipal bonds, generally in a laddered structure.
CGN Balanced Core Portfolios (Stocks & Bonds):
This strategy combines CGN’s Core Stock and Core Bond strategies to create a “Core” asset allocation portfolio based upon individual clients’ objectives, risk-tolerance, time-horizon, and preferences. Portfolios are generally constructed with a long-term stock target between 20% and 90% and normally include an allocation between 10% and 30% to CGN Tactical Asset Allocation Strategies.
CGN Tactical Asset Allocation Strategies:
CGN has created three strategies with various levels of risk from aggressive to conservative utilizing a core/satellite approach. These strategies provide broad exposure to “core” asset classes similar to those found in the CGN Core Stock and CGN Core Bond portfolios in addition to “satellite” asset classes that provide additional diversification, improving the portfolio’s risk/return profile.
Portfolios generally consist of 5-20 low cost ETFs and/or index mutual funds. Over time, CGN will “tactically” over-weight or under-weight allocations to these positions relative to long-term targets based upon changing market and macroeconomic conditions and opportunities. Given our focus on risk management, we believe it is important that our tactical decisions do not compromise clients’ objectives and risk-tolerance. As such, we have defined acceptable ranges for target allocations.
While CGN Tactical Allocation Strategies may be appropriate as standalone portfolios, they are generally utilized within a broader portfolio strategy in conjunction with CGN’s Core Strategies