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  • 110 Main St, Poughkeepsie, NY 12601
  • 407 Hurley Ave, Kingston, NY 12402
  • Office: 845-554-1046
  • Toll Free: 855-MS-Wealth (855-679-3258)

INTEGRITY

PASSIONATE

INSPIRING CONFIDENCE

PROACTIVE

COLLABORATIVE

Portfolio Selection

Marshall & Sterling Wealth Advisors, Inc. believes that investment diversification is a critical tool in effectively managing a portfolio’s total return and risk exposure. Therefore, all of Marshall & Sterling Wealth Advisors’ model portfolios are diversified across multiple asset classes. Under normal market conditions, Marshall & Sterling Wealth Advisors favors a balanced investment style, meaning that our clients’ accounts will normally have exposure to multiple asset classes.

Marshall & Sterling Wealth Advisors actively manages model portfolios for use in our clients’ accounts with multiple investment strategies.

Our Investment Committee utilizes our research capabilities to their fullest extent to choose the asset classes that we use in each of our model portfolios. After we identify the asset classes that will be included in our model portfolios, we choose the appropriate investments and investment managers.

The Investment Committee of Marshall & Sterling Wealth Advisors, Inc. meets formally at least three times per quarter and reviews each investment which comprises the Firm’s model portfolios. Research and performance measurements are conducted on an ongoing basis and every day that the New York Stock Exchange is open.

Strategic Investing Process

  • Asset Class Selection and diversification are our primary focus. The landmark work of Harry Markowitz, for which he won the Nobel Prize in Economic Studies, found that selection of the proper asset class, what is commonly referred to as asset allocation, accounts for 94% of the variation in portfolio returns. Only 6% of return is attributable to market timing and stock selection. (Markowitz, Harry M., "Portfolio Selection," The Journal of Finance , Vol. 7, No 1. (Mar., 1952), Brinson, Gary P., Hood, Randolph L., and Beebower, Gilbert., "Determinants of Portfolio Performance," Financial Analysts Journal, Vol. 42, No. 4 (July/August 1986))
  • Over 20,000 investments are screened to focus on cost efficiency and liquidity. 
  • Investment managers are carefully reviewed, and whenever possible, interviewed. We favor investments with stable management and an established track record of managing investment expenses and/or minimizing benchmark tracking error.
  • When Marshall & Sterling Wealth Advisors reviews the total return track record of an investment, we hone in on the performance during, and immediately after time periods when economic and market conditions are similar to the current economic and market conditions.
  • When comparing investments within the same asset class, our preference is for investments highly rated by Morningstar.

Ongoing Evaluation and Benchmarking

At each investment committee meeting the individual investments in each of the model portfolios are compared to an appropriate benchmark. Finally, each model portfolio as a whole is “stress tested” against a market downturn in an effort to minimize the downside loss potential within the portfolio strategy.

While the minutes of our Investment Committee meetings are proprietary and confidential, our outlook and the rationale behind how a model or models are constructed can be disclosed as part of a client meeting or discussion.

Trading Decisions

Under normal circumstances, or unless otherwise instructed in advance by an account holder, when a trade is made that alters a core holding of a model portfolio, that same trade is made in each client account in which that model portfolio is part of the investment strategy that the client and Marshall & Sterling Wealth Advisor have reviewed and selected.

Disclosure

No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time.