ButlerJeffrey
Wealth Advisory
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Investment

Our Investment Philosophy

Reflecting the global market; factoring each data point and every human interaction; knowing these are the forces that drive fair value—and helping us be a steward of clients’ wealth.

 

At ButlerJeffrey, we have confidence in the power and efficiency of capital markets to provide positive returns. Our investment Philosophy is based on the belief that strategies designed to capture these returns will provide a better investment for our clients over the long term. 

By leveraging a line-up of funds focused on capturing market returns, avoiding risks that don’t add value, and reducing costs, we’re able to build TruePortfolios that work better to meet our clients’ goals. While not universally followed by other wealth management firms, this strategy has been proven time and again to be a better approach.

 

 

The Ten Drivers Of Our Investment Philosophy

 

1. Embrace market pricing

The market is an effective, information-processing machine. Millions of participants buy and sell securities in the world markets every day, and the real-time information they bring helps set prices.

 
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2. Don't try to outguess the market

The market’s pricing power works against mutual fund managers who try to outsmart other participants through stock picking or market timing. As evidence, only 19% of US equity mutual funds have survived and outperformed their benchmarks over the past 15 years.

 
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3. resist chasing past performance

Some investors select mutual funds based on past returns. However, funds that have outperformed in the past do not always persist as winners. Past performance alone provides little insight into a fund’s ability to outperform in the future.

 
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4. let the markets work for you

The financial markets have rewarded long-term investors. People expect a positive return on the capital they supply, and, historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.

 
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5. Consider the drivers of returns

The financial markets have rewarded long-term investors. People expect a positive return on the capital they supply, and, historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.

 
 

6. Practice Smart Diversification

Diversification helps reduce risks that have no expected return, but diversifying within your home market is not enough. Global diversification can broaden your investment universe.

 

7. Avoid Market Timing

You never know which market segments will outperform from year to year. By holding a globally diversified portfolio, investors are well positioned to seek returns wherever they occur.

 
 

8. Manage your emotions

Many people struggle to separate their emotions from investing. Markets go up and down. Reacting to current market conditions may lead to making poor investment decisions at the worst times.

 
 

9. Look Beyond The Headlines

Daily market news and commentary can challenge your investment discipline. Some messages stir anxiety about the future while others tempt you to chase the latest investment fad. When tested, consider the source and maintain a long-term perspective.

 
 

10. Focus on what you can control

A financial advisor can create a plan tailored to your personal financial needs while helping you focus on actions that add value. This can lead to a better investment experience.

 
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