Investment Strategies
CGN Advisors Target Allocation Portfolios – Globally-diversified managed portfolio solutions utilizing various Exchange Traded Funds (ETFs), mutual funds and/or individual stocks. Portfolio target asset allocations range from stock/bond mixes of 100% Stocks down to 20% Stocks/80% Bonds, in increments of 10%, with the option to be 100% Bonds. The following strategy options are currently available:
- Strategic ETF Portfolios (Portfolio Builder) – Utilize low-cost ETFs with long-term strategic allocations and are available in Diversified or TaxAware Diversified strategies. Suggested account minimum of $5,000 or automatic investment program.
- Managed Fund Portfolios
(MFA) – Actively managed core/satellite portfolios utilizing a hybrid of active and passive mutual funds and/or ETFs. Portfolios are available in Diversified, TaxAware Diversified, Short-Term Bond or Sustainable/ESG strategies. Suggested account minimum of $25,000.
- Individually Managed Portfolios (IMA) – Actively managed core/satellite portfolios utilizing the Core Stock Portfolio and Core Bond Portfolio, along with a hybrid of active and passive mutual funds and/or ETFs. Portfolios are available in Diversified, or TaxAware Diversified. Suggested account minimum of $200,000. Individual municipal, corporate and government bonds or CDs may be utilized within these models where appropriate in place of certain mutual funds/ETFs (generally 25k minimum position size for muni and corporate bonds).
Sustainable ESG Portfolio (ESG) – Actively managed portfolios with a focus on investments with High or Above Average Sustainability and ESG (Environment, Social, Governance) scores within their peer groups, with limited Controversy exposure. Data for scoring is derived from Morningstar Direct and Sustainalytics and is applied to the overall portfolio in a quantitative and consistent fashion. Portfolios may not meet certain values based on exclusionary requirements, rather seek to provide a larger exposure to companies that score higher according to the Sustainalytics methodology.
Core Stock Portfolio – A managed core stock portfolio focusing primarily on Mid-Large Cap US stocks, diversified across economic sectors and chosen through bottom up research focusing on Growth at a Reasonable Price (GARP) and Dividend Growth factors; seeking high-quality, well-managed companies settling at attractive valuations. Portfolios are generally fully invested, consisting of 35-50 securities. 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 500 Index.
Core Bond Portfolio – A managed core bond portfolio 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 3 and 7 years, an average credit quality of A or better, and may include positions in mutual funds, ETFs and cash 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 Bloomberg US Aggregate Bond Index.
Short-Term Bond Portfolio – Intended to provide capital preservation while seeking maximum yield, focusing on high-quality short term bonds and money market instruments. May be suitable for use as a short-term reserve portfolio. Portfolios may include positions in ETFs, mutual funds, CDs, bonds and cash, and will generally fall within 1-5 years until maturity with an average effective duration less than 3 in order to reduce interest rate sensitivity. Portfolios will maintain an average credit quality of A or better. Although the portfolio should have a higher yield than money markets, the value may fluctuate over short-term time frames.
Portfolio Management Fees
CGN provides professional investment management services for clients who wish to delegate the discretionary management of their portfolio based upon the following tiered schedule:
| Total Assets Under Management | Annual Fee |
|---|
| $0 to $500,000 | 0.75% |
| $500,001 to $5,000,000 | 0.50% |
| $5,000,001 and above | 0.25% |
CGN may aggregate accounts within a household for purpose of reaching the tiers above. While CGN does not have a minimum account size, households are subject to a $250 minimum annual fee. Portfolio management services may receive a reduced fee when combined with ongoing financial planning services.
