Clear investment disciplines – backed by extensive experience with institutional investing – give RJ Capital clients customized financial planning that is strategically aligned to their unique investment needs.
Our commitment to Total Portfolio Management, paired with our Core-Satellite Investment Strategy, ensures that your investment portfolio is clearly defined and appropriately balanced.
Total Portfolio Management
RJ Capital’s Total Portfolio Management is a holistic approach to financial planning that is designed to achieve your ideal investment balance between risk and return. We view Total Portfolio Management as a three-step process:
- Assess your existing assets and liabilities
- Define your ideal risk-return balance
- Establish and tightly manage a custom portfolio of investments that achieve that balance
Regular contact with you enables us to rapidly incorporate changes that could impact the risk-return balance, including career updates, financial windfalls or setbacks, and unforeseen monetary expenses. With a commitment to maintaining sound financial policy for decades to come, we prepare you to ride out positive and negative economic cycles.
The Asset Allocation Policy that we set for you establishes the ideal return and risk for your investment portfolio. Through Asset Allocation, a diversified investment portfolio is developed by combining different assets in varying proportions.
The proper weighting of asset-class benchmarks incorporates historical and projected performance.
Whatever specific investments are chosen to fulfill your Asset Allocation, costs, taxes, risk (portfolio volatility) and return (investment returns) are the underlying considerations that factor into your Total Portfolio Management.
Core-Satellite Investing
RJ Capital’s Core-Satellite Strategy combines passive and active investment management styles to minimize your costs, tax liability and volatility while creating the opportunity for you to outperform the broad stock market as a whole. With the Core-Satellite approach:
- The bulk of your portfolio – the Core – is invested in passively managed funds. Core funds should produce returns that are close to benchmark, at a low cost and with very low tracking errors.
- The balance of your portfolio – the Satellite – is invested in actively managed, high-alpha funds. These Satellite investments aim for enhanced, higher returns, ideally three percent or more over benchmark.
When these two elements are combined, your portfolio is well positioned to beat its benchmark in a risk-controlled manner.
Many investors find Core/Satellite attractive because it allows them to take advantage of the long-term benefits of core investing while also gaining modest exposure to sectors that offer potential for more dramatic returns.
The key to success in implementing a Core/Satellite structure in your portfolio depends on two main factors: Your risk tolerance; and the Satellite investment’s ability to generate market-beating returns. Properly implemented, a Core-Satellite strategy may result in a better designed portfolio with lower risk, and most likely better long-term performance.