Investment Management to Meet Your Milestones

The FOMF portfolio is designed to expose clients’ assets to a range of capitalization sizes (large-, mid-, and small-cap) and styles (value and growth) in primarily domestic markets; the portfolio does contain some international exposure for added diversification. The concept behind this approach is to take advantage of an optimal mix of capitalization ranges and investment styles to influence total return over the long term.

The asset allocation of the FOMF portfolio is determined by our investment team and adjusted to account for current market trends. The FOMF portfolio follows an active investment discipline of reallocating assets of the portfolio back to the predetermined target allocation. The mutual funds themselves are screened through a rigorous due diligence process and may include both actively managed and passive index funds.

The GARP portfolio focuses on investing in the common stock of financially strong companies with unique products and services. We look for companies that are growing revenues and earnings faster than the overall market, while their stock prices are trading at a reasonable price. We pay close attention to the overall portfolio and individual security valuations as measured by a myriad of financial ratios including the price to earnings, price to cash flow and price to sales ratio.

We use a bottom-up selection criteria for the asset allocation of our Growth at a Reasonable Price (GARP) portfolio. We choose what we believe to be financially strong, high-quality companies, who are industry leaders with proprietary products and services. We select companies whose revenues are growing faster than their respective sector averages and that we believe are reasonably priced. We evaluate stock candidates, in part, based on price-to-earnings (P/E) and price-to-sales (P/S) ratios.

The objective of the International Diversified portfolio is to establish a diversified allocation of international equities, along with international REITs, aimed at optimizing the risk/reward profile when combined with other KCM portfolios. By including this portfolio as part of an overall strategy, investors gain exposure to a variety of asset classes that typically complement a U.S. equity allocation. The portfolio utilizes mutual funds to access international markets, with the overall asset allocation consisting of 75% in a mix of small, mid, and large capitalization international equities, 15% in emerging markets equities, and 10% in international REITs.

The Micro-Cap portfolio is designed to provide access to the often-overlooked micro-cap segment of the market. The main thesis for the strategy is that this unique asset class can give investors the benefits of private equity (PE) and venture capital (VC) like returns without such drawbacks as illiquidity, high fees, and questionable performance return calculations.

This portfolio consists of market-traded mutual funds and exchange-traded funds with PE and VC characteristics. The mutual fund sub advisors invest in publicly traded stocks with market capitalizations around $500 million or smaller which have healthy growth potential, solid fundamentals, and trading at attractive valuations (Growth, Financial Strength, Opportunity). When coupled with our other KCM strategies, the Micro-Cap Portfolio provides a differentiated return stream that has the potential to outperform larger cap asset classes albeit with higher volatility.

The Income & Growth portfolio is designed and managed to maintain a high current yield and growth of income over time, while achieving a moderate amount of capital appreciation. The distinguishing feature of this portfolio is its ability to provide consistently high levels of current income, comprised of interest and dividends paid to investors regardless of market conditions.

The Income & Growth portfolio invests in equity securities of companies which have the prospect of moderate growth of corporate earnings and higher-than-market dividends. Bond funds may also be included when they meet our criteria. This portfolio strives to offer investors both an attractive level of current income, and the opportunity for capital appreciation. It can also be managed in a tax-efficient manner for taxable accounts.

The Inflation-Protection portfolio is a unique portfolio of a blend of assets classes which demonstrate low correlation to the broad equity markets. The portfolio is designed to mitigate overall portfolio volatility and hedge against both expected and unexpected inflation.

Asset types include: Ultra short-term bonds, Treasury Inflation Protected Securities (TIPS), Natural Resources, non-traditional bonds , Gold, and Residential REITs. Highly liquid mutual funds and exchange-traded funds (ETFs) are used in this portfolio. It is designed to maintain stability of assets, especially when needed to meet near-term spending goals or needs.