SFMG Wealth Advisors’ mission is to build and preserve your wealth over the long term. Although we cannot predict short-term trends, we can assist you in detecting long-term patterns and respond accordingly. As the market changes, our investment management team makes adjustments to your portfolio to reflect the current risk environment. Every decision we make is in accordance with your long-term goals and risk tolerance. By relying on our research and years of experience, we strive to bring you a greater sense of confidence regardless of the market conditions.
Our Investment Management Process
The process of constructing your investment portfolio takes into consideration your financial objectives, the timeline for reaching your goals, and the return expectations. Our investment management team creates a portfolio that considers tax and cash flow factors. Thanks to our philosophy of ongoing portfolio management and dynamic allocations, our goal is to provide you with a more responsive portfolio to market risks than the typical “buy, hold, and hope” approach.
This approach to portfolio management uses tactical allocation changes and is based upon the decisions of our Investment Committee that determines specific tactics for your portfolio. The Investment Committee operates in a manner that provides uniformity and consistency to the investment process. Each member of the Committee possesses unique qualifications, providing a wide array of perspectives and a combined 150+ years of knowledge and experience. This Investment Committee model serves to provide you best-in-class thinking and a system of checks and balances for important investment decisions.
Developing a Personal Investment Policy
By understanding your goals through our comprehensive planning process, our investment management professionals can quantify the returns that are required to reach your financial objectives. We begin by developing a personal investment policy. Each individual investment policy lists such factors as risk tolerance, financial objectives, return expectations, time horizon, tax considerations, and ultimately the portfolio asset allocation.
We guide your expectations by keeping the short-term ups and downs of the market in context, while remaining focused on the pursuit of your long-term goals.
Effectively Implementing that Policy
Your personal investment policy is the guide for how investment allocations are implemented. The Investment Committee meets regularly to determine if any changes in investment allocations are needed. We believe that a centralized decision-making process ensures uniformity and consistency of investment strategy. By minimizing individual bias, the Committee provides a more objective consensus that focuses on investment opportunities while assessing previously adopted strategies.
The Goal: A Strategically Sound Portfolio
A strategically sound portfolio should be able to respond to the longer-term trends of the economy and financial markets. We do not believe that it is possible to time the short-term moves of the markets efficiently, but larger cyclical moves are evident and should not be ignored. We have developed economic, fundamental valuation, and technical indicators that enable us to implement tactical changes to client portfolios as market conditions dictate. As a result, we incorporate both the traditional investment classes of stocks, bonds, and cash with investment vehicles such as mutual funds, ETFs, private equity, real estate, commodities, hedge funds, and more.
Finally, the SFMG Wealth Advisors team not only adjusts the portfolio to follow market trends, but also monitors your risk tolerance given major changes in your situation or outlook. At the end of the day, we want to partner with you to make sure your portfolio reflects your long-term goals and short-term needs, as well as your overall tolerance for risk and volatility.