Diverse Innovative Portfolios

We use what we believe are the best outside investment managers available, with portfolios built on mutual funds, ETFs, managed accounts, hedge funds and other private investments.

Rather than merely focusing on age or wealth, our process was developed by our investment committee based upon the principals of behavioral finance. The result is a portfolio that is specifically matched to a client’s risk tolerance. We do this by optimizing the portfolio based upon the expected return, volatility and correlation of the underlying components.

1. 1. Investment objective
  2. Portfolio risk definition
  3. Reaction to levels of loss
  4. The risk/return trade off
  5. Potential losses vs. potential gains
  6. Anxiety of losses vs. the satisfaction of gains
  7. Investment performance time horizon
  8. Stability of Returns
  9. Personal goals vs. benchmark comparison
  10. Spending or gifting levels

Market Analysis

Our investment committee meets weekly to evaluate current and prospective investment strategies in light of shifts in market conditions and any notable economic or legislative events. This process leads to portfolio realignments quarterly or more frequently if warranted, and the results of the committee’s deliberations are shared with clients in both market commentary and detailed quarterly performance reports.

Best Thinking - Best Practices

We objectively evaluate investment opportunities available throughout the investment community to identify the most appropriate solutions for client portfolios. We employ a unique suite of liquid and transparent solutions that balance clients’ needs for growth and return against prudent exposure to risk. When appropriate, we also provide our clients with access to investments in high quality hedge funds, funds of funds or other private investments with an emphasis on increased transparency and liquidity relative to their peers.

Diversification and Adaptive Asset Allocation

Beacon Trust builds efficiently diversified portfolios by assessing the return potential of multiple investment opportunities balanced against exposure to market, credit, duration, currency, global macro, liquidity and other risks. As market conditions or our market outlook changes, we may adjust clients’ allocations to ensure portfolios remain aligned with their own and their families’ goals.

Active Tax Management, Loss Harvesting and Asset Location

We firmly believe that it is not what our clients accumulate, but what they retain that is important. For this reason, when an opportunity presents itself, we may proactively recognize tax losses that can be used to offset future gains. In addition, we are always tax conscious in our manager selection and portfolio development process—including in our asset location, titling assets in ways which are most tax efficient.

Continuous Manager Evaluation

We employ a thorough process of ongoing quantitative and qualitative due diligence when engaging and terminating investment managers. In this process, we have a bias against making decisions to terminate managers because of short periods of underperformance, but managers who do not meet our investment objectives are replaced on a proactive basis.

Performance Reporting and Coordinated Asset Management

Beacon Trust regularly provides detailed reports to its clients on the performance of the strategies and managers in their portfolios, providing performance analysis by style, asset class and for the overall portfolio. We can also aggregate investment accounts held outside of Beacon Trust into our reports to create a more complete overview of the asset allocation and performance of a client’s total investment portfolio. Including outside assets into our reporting also enables us to more efficiently optimize allocation changes and keep portfolios appropriately aligned as economic conditions change.