At the core of our investment philosophy is a belief that every asset exists to satisfy a client's future need for cash. Correspondingly, we define risk as not having the cash the client needs when the client needs it. Therefore, informed investing must combine an understanding of the client's future needs for cash with an understanding of investment markets. Our objective, as manager of a client's assets, is to achieve an optimal level of long-term return within the risk constraints of the client.
We believe that a well-informed client strengthens the client/advisor relationship and enhances the discussion of progress toward goals. Ongoing communication is essential to ensure that plans and strategies are refined as time passes and circumstances change. Three key elements to our Investment Philosophy are: Investment Policy Statements, Diversification, and Tax Management/ Investment Costs.
Investment Policy Statements
We believe that an Investment Policy Statement (IPS) is the cornerstone of a successful investment plan. It sets clear and specific asset allocation targets, benchmarks and parameters; and must be understandable and acceptable to the client.
Diversification and Investment
We believe that disciplined management and diversification within and across capital markets are key to implementing sound investment strategies. We have great respect for the efficiency of capital markets and use index funds and exchange traded funds where appropriate. We also acknowledge that inefficiencies in markets exist and that mutual fund managers with integrity, intelligence and discipline can add value to performance over time.
Tax Management and Costs
We believe that attention to taxes and investment costs are important considerations to the realizable returns achieved by the client from a portfolio.
At The New England Guild, the hallmark of our approach is the belief that informed advice achieves better results. We put a high priority on knowing our clients and the people and things they care about. This is as important to us as understanding their financial goals and challenges. We don't just provide investment management; we look at every client's circumstances in context so that we can make more informed decisions.
Our approach is structured to provide three key elements that we believe distinguish our capabilities and provide greater value to our clients: Objectivity, Expertise and Services, and Collaboration.
We have structured our services to be highly objective and customized to achieve specific goals. Unlike many financial services firms, we are paid exclusively by our clients on a fee basis.
We do not take compensation for transactions or for products we recommend. This arrangement enables us to provide comprehensive, objective recommendations to our clients and ensures that they receive the best possible advice we can provide.
Integrated Expertise & Services
We believe that our approach and the financial capabilities we offer differentiate us from other investment advisors. These include estate planning, strategic tax planning, gifting strategies and other capabilities that are often not offered by other investment management firms.
We analyze every new client's holistic financial picture when they engage us, so that we can identify opportunities and anticipate challenges. This is a service we consider essential to their financial well-being, and it is included in our management fee.
Our firm members bring diverse financial capabilities to our clients and it is common for us to collaborate on behalf of a client internally in order to bring them the best possible solution. In addition to the diversified expertise that exists within The Guild, we work with lawyers, accountants, insurance agents, mortgage brokers and other outside experts on behalf of our clients. We also collaborate with our clients, viewing our relationship with them as a partnership.