Investment Process

At TCM, we utilize the investment principles of asset allocation and diversification. According to academic research, asset allocation accounts for the majority of a portfolio’s return over time, while security selection and market timing are unreliable. Asset allocation refers to the choice of asset classes and the percentage of assets allocated to each. Simply put, it means diversifying your portfolio across many asset classes so as not to “put all your eggs in one basket.” By employing this approach, you may reduce the volatility, or risk, of the portfolio and produce a smoother return over time.

Investment Selection

We use no-load mutual funds and exchange-traded fund (ETFs) as investment vehicles for your portfolio. Your account will be invested in a wide range of asset classes including:

U.S. and international equities
Large, mid, and small cap equities
Value and growth equities
Diversifying strategies
Fixed income investments

Using ETFs, we generally look for non-correlating asset classes consistent with our investment strategy, lower volatility and lower expenses. Assets are held in your name at a well-recognized, independent custodial firm, usually Fidelity. With your approval we can purchase and sell investments in your account on a discretionary basis according to your personal investment strategy.

Rebalancing and Monitoring
TCM adds unemotional discipline to your portfolio through the rebalancing process. We rebalance in the following situations:

Markets move such that the allocations are outside acceptable ranges.
We decide to marginally overweight or underweight a particular asset class.
We add a new ETF or sell an existing ETF.

Your Accounts are monitored on a continuous basis and we are always available to our clients. Global Capital Markets are monitored by both TCM and a team of outside research analysts. Client accounts are reviewed periodically to determine if the asset allocation is consistent with the Investment Policy Statement. When warranted, we make appropriate changes to your portfolio. This investment process is designed to help preserve and grow your wealth.