Investment Process

After a thorough analysis of each client’s current and expected future income, expenses and net worth, Maidstone and the client work together to build an investment policy statement (“IPS”) that we believe has the highest probability of enabling each client to reach their financial goals. This statement helps both the client and our firm outline and understand risk preferences and income requirements allowing us to tailor a portfolio strategy that meets the needs of the client while adequately reducing risk through proper asset allocation, diversification and potentially through a portfolio hedging strategy.  Our goal is not to produce the highest returns while ignoring risk, but to preserve principal and to invest to meet your goals with the least amount of risk possible.

Asset Allocation

The first and most significant part of the investment management process is asset allocation. This involves a tactical allocation setting a percentage range of a client’s portfolio to be invested in each major asset class: equities (stocks, stock mutual funds or stock Exchange Traded Funds “ETFs”), fixed income (bonds, bond mutual funds or bond ETFs ) and cash (money market funds, t-bills).  Generally, these ranges are based on age, risk tolerance and income requirements and will contemplate client assets managed away from Maidstone.  Depending upon where we are in economic and market cycles, different asset classes and strategies within an asset class present different risk and reward opportunites.  As we move through the cycles, we discuss our view on the best risk/reward opportunities currently available and together the client and advisor may agree to adjust the investment plan.