Asset Management

 

AssetAllocationIt's how you mix your assets, such as cash, stocks, and fixed income investments --- and it is critically important. Inexperienced investors tend to overreact to stock market ups and downs. In the midst of stock market fluctuations, these investors are fighting an emotional battle between fear and greed. Asset management can help. Asset management may reduce some of the volatility associated with investments. It may not sound very exciting, but it can be effective. Returns on diversified assets may not fluctuate as much as less diversified assets do. This means you may not experience the stomach-churning drops that a concentrated investment or portfolio can deliver. You probably won't know the euphoria of extraordinary, short-term profits, either. Instead, you remain positioned to help meet your financial goals more smoothly and with less stress. Below are several asset managment strategies and strategists. You may find one or more to be right for you. If you have questions or for additional information, click “Contact Us” at the top of the page.

 

Neither asset allocation, nor diversification, guarantee a profit or protect against a loss. 

STRATEGIC

Lincoln Strategic with Vanguard

Lincoln Strategic with Vanguard is a risk management program based on Modern Portfolio Theory.  The program seeks to apply science and discipline to its goal of helping to reduce risk for a given asset allocation and overall expected return.  The goal of the program is not to enhance performance but to help reduce risk.

Russell Investments

Founded in 1936, Russell pioneered the field of investment consulting by focusing on investment management rather than investment products.

Investment Philosophy

The Russell investment philosophy is rooted in the belief that financial markets reward knowledgeable, disciplined investors. Based on a philosophy that over a long period of time active managers can add value, Russell selects teams of money managers to meet clients` investment goals. The aim is to reduce risk and provide benchmark-beating results over time.

Goldman Sachs Global Asset Allocation

Goldman Sachs` commitment to the Asset Management Division, organized in 1988, is evidenced by swift, steady growth and experience in managing a complete global product line that includes global asset allocation services, domestic and offshore mutual funds, institutional separate accounts and private investments.  The Asset Management Division is continuing Goldman, Sachs & Co`s 130-year tradition of global financial leadership, outstanding client service and quality products. The firm's vast global resources, fundamental research and risk management capabilities are reflected in every investment service offered.

Investment Strategy

At Goldman Sachs Asset Management, asset allocation decisions are driven by The Black-Litterman Model, a proprietary tool created by senior Goldman Sachs partners in 1990. Designed to seek an optimum balance between risk and return in a portfolio on an ongoing basis, Black-Litterman is the same tool used to manage risk for the Firm's own balance sheet. Allocation recommendations for the Goldman Sachs Asset Allocation models are made on a quarterly basis, and while recommended changes may be subtle, they could include an addition or removal of an entire asset class.

Investment Philosophy

Because global markets have changed significantly over the decades, Goldman Sachs bases asset allocation decisions and portfolio structure on analysis of expected future returns, not simply a record of historical results. Value, momentum and inflationary expectations models are key inputs in each market the team examines. The Goldman Sachs approach seeks to add value through four layers of global decision-making including (1) Asset class decisions, (2) Equity country selection, (3) Fixed income country selection, and (4) Currency selection. Each quarter, recommendations for tactical reallocations of asset class weightings are based upon the decisions of the Goldman Sachs Quantitative Research Group.

Lincoln Progressive Asset Management

Progressive Asset Management is Lincoln's risk management program based on modern portfolio theory.  The program seeks to apply science and discipline to its goal of reducing risk for a given amount of return.

Science:  Modern Portfolio Theory

Modern Portfolio Theory, the foundation of Ibbotson is a long-term approach to investing that mixes fundamental asset classes into targeted portfolios.  The goal of the portfolio allocations is to provide the highest level of return possible for the risk level of the chosen portfolio.  Ibbotson uses a complex mathematical technique known as optimization to generate the portfolio allocations to each asset class.  The mutual funds for the portfolio are then selected from over 400 different funds and continually monitored by Lincoln Investment using a best of style approach.

Discipline:  Quarterly Rebalancing                                           

The goal of Progressive Asset Management is not to enhance performance, but to help reduce risk.  As your initial target portfolio is affected by the normal volatility (ups and downs) of the stock, bond, and international markets, the allocations of each asset class will shift slightly, which could potentially increase the risk within your portfolio.  When rebalancing your portfolio quarterly, the risk level is reset to its original target.

TACTICAL

ICON Advisers, Inc.

ICON Advisers offers private account management services to individuals, private trusts, qualified retirement plans, foundations and endowments. Since 1986, ICON has worked with financial advisors to deliver its money management system.  ICON Funds are a sector mutual fund series consisting of eleven domestic funds, five international region funds, and one short-term income fund.

Investment Strategy

This is a tactical allocation strategy that attempts to take advantage of short and intermediate term market inefficiencies with the goal of improving risk-adjusted returns. ICON uses its valuation methods to determine which market sectors are undervalued and then allocates accordingly. Reallocations are made as needed on a valuation rather than a calendar basis.

Investment Philosophy

Dr. Craig Callahan, chief Investment Officer for ICON Advisers, Inc., developed and manages the ICON Advisers approach, which is based upon the methods and teachings of Benjamin Graham, often referred to as the "father of securities analysis." ICON Advisers, Inc. is a value-based sector rotation strategist who believes that advances in world financial markets are defined by themes. These advances are led by specific asset classes, industries and countries that, when properly combined and weighted, outperform their related benchmarks. The most undervalued asset categories, industries, and countries may be the leaders when new themes in world markets emerge. The decisions are implemented through the ICON funds. ICON Advisers, Inc uses its valuation methods to determine which market sectors are undervalued and allocates on that valuation basis.

CLS Investment Firm

CLS Investment Firm is an SEC registered investement adviser based in Omaha, Nebraska.  CLS was founded in 1989 by seasoned financial advisor, W. Patrick Clarke and is one of the largest privately owned third party money managers in the United States.  

Investment Methodology

A combination of asset allocation and risk management, CLS calls their investment methodology Adaptive Risk Allocation. Adaptive Risk Allocation consists of four elements:

Diversification

Risk Budgeting

Relative Strength

Asset Class Risk

Investment Discipline

CLS believes risk budgeting is a critical element in creating model portfolios. An investor's risk budget is based on their individual financial goals, ability to handle risk and overall time horizon. Once a budget has been assigned, that risk cannot be over-spent nor can it be under-used. Risk budgeting manages the level of risk within an investor's portfolio. CLS' goal is to weather down markets, take advantage of up markets and find profitable industry segments in a sideways market. By maintaining a risk budget and making trades based on both asset class and portfolio risk, CLS is able to capitalize on areas of growth and underweight areas of risk.

Risk Budgeting

The risk associated with various asset classes changes over time. That's why CLS' risk budgeting is a critical element in creating and maintaining client portfolios. Our portfolio management team is always watching market conditions and making adjustments to the portfolios in accordance with the goals and risk of the portfolio.

Who is this strategy suited for?

This approach may appeal to investors who:

  • Wish to maintain a consistent risk level to their investment portfolio.
  • Wish to take advantage of periods of relative undervaluation among asset classes

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AAMA Master

Advanced Asset Management Advisors, Inc. (AAMA) specializes in portfolio design and asset management. AAMA's investment committee has over 100 years of combined experience, including more than 30 continuous years of managing portfolios of mutual fund investments. The goal of the AAMA portfolio management service is to provide clients with favorable risk-adjusted returns relative to market indices.

AAMA Master Discipline

AAMA's portfolio management discipline is independent and forward-looking, relying on proprietary research and insight. AAMA's equity research focuses on: industry and sector relative historical P/E ratio; industry and

sector earnings momentum; and style and sector relative performance. The portfolio is analyzed based on targeted style and sector weightings; fund composition; fund relative strength, and overall characteristics.

Who is this strategy suited for?

This strategy may be suited for investors who:

• Seek aggressive long-term appreciation of capital through investment in mutual funds that are investedprimarily in domestic common stocks.

• Are comfortable assuming the risk of a 100% equity portfolio with volatility that may be higher than the general stock market.

• Wish to aggressively take advantage of relative undervaluation among styles, sectors, and industries.

CCMG  Clark Capital Management Group

Since 1986, Clark Capital has been helping investors peruse their investment and retirement goals through innovative and sophisticated wealth management solutions.  The Clark Capital portfolios seek to take advantage of performance inequities that occur among different segments of the capital markets at various points in time.  Portfolios are constructed of the segments expected to be the strongest performers in the near term and closely monitored and adjusted as the investment environment changes.

CCMG Master Disciplines

Style Preferred Master seeks to emphasize the most attractive equity investment style at any given time, selecting from among a value or growth style and seeking the most attractive market capitalization.  Clark Capital's disciplined approach is based on the reality that different equity investment styles perform better at different times.

The Multi-Strategy Master portfolio seeks to emphasize the most attractive segments of both the equity and fixed income markets at any given time.  75% of the portfolio will be invested in equities, rotating among four equity styles: large-cap value, large-cap growth, mid/small cap value, and mid/small cap growth.  The remaining 25% of the portfolio will rotate among high yield bonds, government bonds, and money market funds.  Clark Capital's approach is based on the fact that these trends sustain themselves over substantial time periods.

Who are these strategies suited for?

This strategy may be suited for investors seeking:

  • Long-term financial goals
  • A balance between risk and return
  • A disciplined approach

Meeder  Meeder Investment Management

Meeder Investment Management was established in 1974 in Columbus, Ohio as an investment management firm that worked with individual investors and small retirement plans.  

Meeder Tactical Allocation Discipline

Meeder's Tactical Asset Allocation discipline is an active portfolio amangement strategy that adjusts a portfolio's asset allocation based on short to intermediate term market forecasts.  Its objective is to systematically exploit inefficiencies or temporary imbalances among different asset classes, including large-, mid- and small-cap stocks, growth versus value, and individual market sectors. 

Who are these strategies suited for?

This strategy may be suited for investors seeking:

Growth of capital to help achieve long-term financial goals

To help balance the objectives of capital appreciation with capital preservation;

  • A disciplined approach over time

 

Lincoln AIM

Adaptive Intelligence Model (AIM) recognizes the importance of a forward-thinking approach to investing.  The discipline utilizes a an Asset Alocation Nueral Network (AANN) that makes predictions as to the potential relative strength of asset classes representing the major domestic and international equity and debt sectors.  AANN adapts and learns from past expereince by reviewing thousands of historical inputs, and identifying and interpreting patterns and casual relationships as they relate to these major domestic and international equity and debt markets.  the AIM Index Portfolios combine the benefits of a tactically managed portfolio with the broad diversification featues of Vanguard index funds.

 

All the above asset strategies are offered as part of the Solutions and/or Solutions Premier advisory program. For a complete description of terms, services and costs, see the Investment Advisory Agreement and Disclosure statement. There can be no assurance that the objectives will be met.  Your financial representative will provide you with a current asset class allocation, including specific mutual fund recommendations, and all applicable prospectuses. Read these carefully for more complete information including costs and risks before you invest or send money. There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. The purchase of certain securities may be required to effect some of the strategies. Investing involves risks including possible loss of principal. Diversification or asset allocation do not guarantee a profit or protect against a loss.  Lincoln Investment and Capital Analysts are not affiliated with any of the above companies.

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck