INVESTMENT MANAGEMENT
Towercrest Capital provides clients with ongoing investment management services on a fee-only basis. We manage diversified portfolios that are designed to meet clients’ risk and return objectives. An appropriate portfolio is determined by a client’s investment objectives, investment time horizon, liquidity needs and risk tolerance. These services are generally performed on a discretionary basis.
A well-thought investment process is a critical element for success. Our process emphasizes:
Diversification
By holding assets with different characteristics, a diversified portfolio can be better positioned to weather market volatility. The more diversified your portfolio, the greater chance you have to control investment risk and achieve strong returns over time.
Tactical Asset Allocation
A dynamic investment strategy that actively adjusts the individual weightings of each asset class held in a portfolio. The goal of this moderately active strategy is to improve risk-adjusted returns by changing/adjusting the securities held in your diversified portfolio. The Towercrest investment team uses fundamental, technical and macroeconomic analysis in determining when and how to adjust the asset class weightings in your portfolio.
Ability to Get Defensive in Down Markets
After years of research, we have developed the Towercrest Financial Conditions Index. This proprietary index identifies strength or weakness in the global securities market. The index serves as a guide to assess changes in market conditions. If the model generates a bearish signal, we get defensive by shifting a portion of client portfolios from stocks to bonds.
Portfolio Rebalancing
Rebalancing involves selling securities that have performed well and moving to securities that haven’t done well – in other words, you buy low and sell high. At Towercrest, we monitor client portfolios and make quarterly rebalancing adjustments to keep the portfolio in line with its target asset allocation. Regularly rebalanced portfolios have lower risk and similar or slightly higher returns then portfolios that have never been rebalanced.
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