PERFORMANCE

There are so many financial advisors who claim they have “beaten the market” or “beaten the benchmark” that it seems as if everyone has. In reality, a scarce 15% of managers beat the market in any given year and only 4.7% of all managers have been in the top quartile each year for the last three years.¹ So what does that mean for an investor? It means that you need to select a manager who meets or exceeds all of the fiduciary standards in managing a client ’s wealth.

The keys to performance are contained in the following methodologies to which StraightLine strictly adheres.

Know your client. It’s crucial that we have an understanding of who you are as an investor and what you’d like to accomplish through our management. There are five variables that allow any manager to build an appropriate investment strategy.

Time Horizon – Knowing the point at which you will be withdrawing more money than what comes in through contributions and earnings.
Risk Tolerance – How much risk you are willing to take over the course of the investment timeline.
Expected Return – What your expectations are regarding the performance of your portfolio.
Asset Class Preference – The level of diversification required to achieve your stated goals.
Tax Status – The impact on the account by the tax ramifications of gains and income.

A Sound Process Consistently Applied. The historical nature of investments and management shows that there are definite methodologies that, when implemented, often lead to above-average long-term performance. The difficulty lies in the continuous following of those strategies. StraightLine does just that.

Above Average Service and Communication. It is more than just occasional contact with clients that ensures a favorable experience. It is the continuous flow of information that ensures appropriate portfolios at any stage of an investment cycle. Without this interaction the portfolio will likely not match the objective.

¹ Source: Morningstar Large, Mid, and Small equity funds through 12/31/2005.

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