Investment Strategies

How We Match Management Style with Investment Type

We advocate a passive investment approach in the areas of greatest market efficiency, such as Large Cap U.S. stocks. Passive management helps keep the overall costs of the portfolio low. We believe in active management particularly in the less efficient areas of investment such as U.S. Small Cap stocks and non-U.S. securities. In all cases, we believe that a prudent process in manager selection and a long-term view is necessary to maximize the opportunities for success in manager selection.

No to Market Timing - clock x-ed out

No to Market Timing

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Fund Manager Selection

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How We Reduce Investment Costs

We generally buy institutional share classes for our clients, the lowest-cost share class. We look for funds with low turnover (which minimizes trading costs and realized short-term capital gains) and that emphasize other tax-sensitive strategies. Predicting markets over the course of a few quarters or a year or two with reliable accuracy is essentially impossible; instead we focus on the factors we can control like fund expenses and tax sensitivity. Research has shown that over longer periods of time lower-cost mutual funds deliver better performance than higher cost funds. Low costs are actually a much better predictor of good long-term performance than focusing on recent performance results.

Vehicles used to implement this philosophy in client portfolios include:

  • Mutual funds
  • Separate accounts
  • Commingled funds
  • Funds of funds

How We Diversify Client Portfolios

We believe in broad diversification across and within asset classes and in providing low-cost portfolio options for our clients.

Typical portfolios will have allocations to:

  • Large Cap Equity (Value and Growth)
  • Small Cap Equity (Value and Growth)
  • International Developed Markets Equity (Value and Growth, Small Cap)
  • Emerging Markets Equity
  • Core Fixed Income/Municipal Bonds
  • High Yield Fixed Income
  • International Fixed Income
  • Emerging Markets Debt

Sample Client Portfolio Breakdown

Hypothetical and for illustrative purposes only. Asset allocation recommendations vary based upon unique circumstances of each individual client. Speak with a Wipfli Financial advisor today if you have questions.

Sample Investment Portfolio Graph