Investment Philosophy:  We develop and manage investment portfolios based on the overall objectives, cash flow needs, and risk tolerance of the client. The investment methodology we adhere to is referred to as the “Modern Portfolio Theory”, which is another term for asset allocation and described in the “Investments” section of our site. This investment style strives to maximize investment returns by diversifying among several asset classes and different investment styles to reduce risk and preserve capital. The primary equity asset classes include small, mid and large cap US stocks and international stocks. Investments styles include, growth and value, and also core, which is a combination of growth and value. The basic premise of our investment methodology is founded on three key principals:

1. Portfolio Structure
2. Continuous Portfolio Management
3. Minimize Operating Expenses

Passively Managed Accounts: Using the above referenced investment methodology; we offer different types of accounts for our client’s core holdings, depending on their personal preferences. We build passively managed portfolios using index funds or ETFs, more commonly referred to as “exchange traded funds”. These portfolios provide maximum diversification and will track the various benchmarks, or the indices in which they are invested. Since these portfolios are not actively managed, there is less risk; however, the upside is limited to the performance of the blended benchmarks. The fixed income portion of a passively managed account can also be invested in IShares¹, or at the client’s discretion, individual fixed income investments, including tax-exempt and taxable bonds, CDs and US Government Securities and Agency Issues.

Separate Account Management: As an alternative to passively managed portfolios, we have access to the top money managers in the world through our affiliation with VSR Financial Services and their Diversified Managed Allocations program, or DMA.  The DMA program utilizes a “turn-key” approach to portfolio management. The program selects and then monitors the performance of the various managers to ensure that the manager’s relative performance is consistent with their stated objectives. The portfolio holdings are re-balanced as needed to remain consistent with the asset allocation model. Essentially, rather than selecting only one manager, a team of managers is selected from among a broad array of asset classes and investment styles. When compared to the passively managed approach, there is more upside potential, but greater risk with active management.

FundSource: FundSource is an innovative service that selects mutual funds from an extensive universe, including well-known no-loads. Through this service, First Clearing Corporation designs a portfolio suited to your investment goals, along with performance monitoring and additional recommendations, as needed. FundSource provides one place to make transactions without loads or commissions:

• One statement summarizing all positions;
• One consolidated tax report at year end and;
• One source to go to for service and research.

Masters Asset Planning (MAP):  Another “fee-only” investment advisory platform that is available through Lane Bridgers is the MAP Account. Whereas the DMA and FundSource programs are turnkey investment advisory programs in which the investor has given discretion to either the separate account manger (DMA) to select the individual securities in their account, or FundSource to select and monitor the mutual funds in their account, the MAP account is an alternative for clients and their Lane Bridgers advisor who want to be more proactive in the management of their assets.

In the MAP program, the client/advisor can build their portfolio using individual stocks and bonds, mutual funds, Unit Investment Trusts, closed end funds, ETFs, etc. The MAP Account is an excellent option for a client who transfers in an existing portfolio that may hold a large position in one stock, and/or several other individual stocks that the client and advisor agree to hold. 

The MAP Program is also a “fee-only” account, but unlike the FundSource and DMA programs, the client may incur minimal transaction fees, ranging from $10-$30 per trade, depending on the type of security that is traded. The transaction fees may be negotiated, depending on the size of the account and the household relationship.

¹ IShares sold throught Barclays Global Investors. For more information, please click here: http://www.ishares.com/.