A written investment policy statement (IPS) is the cornerstone of each client account managed by Anderson Hoagland. Every IPS is different, a reflection of the unique circumstances and varying objectives of our clients.

The majority of our accounts are balanced, meaning that there is a combination of stocks and bonds. The proportion of these two primary asset classes is determined in cooperation with our clients during pre-investment conferences. Among the key variables to assess in making this allocation include a client’s investment time horizon, marginal income tax rate, ability to withstand volatility (the key measure of risk), and need for current income distributions from the portfolio.

Within the primary equity and fixed income allocation, additional asset class diversification occurs as a result of our securities selection methods, which are described in detail in the tabs entitled “Equity Management” and “Fixed Income Management” in this section of our website. In addition, Anderson Hoagland has conducted extensive research on asset class correlation and developed its “Dynamic Diversification Strategy”, a proprietary investment approach which is also described in a separate tab of this section.

Anderson Hoagland’s approach is tax sensitive. We have a modest degree of portfolio turnover, typically in the range of 30% to 50% per year, in order to minimize short term gains and transaction costs. We encourage communication from clients and their tax advisors in order to improve tax outcomes.

We also work with clients to understand whether other investment assets should influence the IPS for accounts managed by our firm. For example, a client may have significant assets in an employer sponsored 401(k) plan or an individual retirement account, and our firm may have no responsibility over these accounts. The existence of these tax-advantaged accounts, however, may be taken into consideration when developing a client’s IPS for assets under our responsibility.

We have unique skills and significant experience managing trust investments. We are sensitive to the fiduciary responsibility undertaken by trustees and the related duties associated with delegation of investment management. We are knowledgeable about the application of modern portfolio theory in trust portfolios, and we cooperate with trustees to balance the interests of income and remainder beneficiaries.