Managing Client Portfolios

Managing Client Portfolios

Proper Diversification is Key

Our approach to managing client portfolios has evolved over the past 3 decades.  A properly diversified portfolio is the key to our concept of successful investing. Whether one is a Growth Investor, Conservative Income Investor or a High Income Investor, proper diversification is accomplished through several portfolio management methods:

   

Our Approach

Customized Portfolio Design

When investing throughout various stages of wealth and given the diversity of client needs, Oftring Investment Group specializes in customized portfolio design. We screen a variety of individual high quality investments in order to offer clients unique investment strategies tailored to individual objectives and needs.  Customization is achieved by blending the following OIG managed portfolio types: Long Term Growth Portfolio -  Conservative Income Portfolio - High Income Portfolio – Special Situation Portfolio – Alternative Asset Strategies Portfolio

 

Long Term Growth Portfolio: 

Our long term growth investment philosophy emphasizes broad exposure to a myriad of asset classes in order to achieve proper diversification.

With volatility in financial markets becoming commonplace, we believe that it is imperative for our investors to achieve broad diversification when investing for long term growth. Asset allocation should not be limited to a typical stock/bond mix; deciding how much risk exposure to stocks versus bonds, then selecting equity mutual funds by category or style box.

A truly diversified portfolio will contain stocks and bonds but will also have exposure to REIT’s, Energy Infrastructure MLP’s, Convertible and Preferred Stocks, Investment Grade and High Yield Corporate Debt, US Debt, Foreign Debt and Equity, Emerging Markets Equity and Debt, Commodity related investments such as Gold, Timber, Grains etc… and other alternative investments, such as derivatives, currencies and private equity.

Being broadly diversified and successfully varying exposure levels between multiple asset categories throughout business cycles is how Oftring Investment Group attempts to reduce investor risk and achieve satisfactory long term returns.

   

Conservative Income Portfolio: 

For our Clients whom desire to earn a good interest rate on their money and who want to invest conservatively.

We will construct a laddered fixed income portfolio consisting of short term to intermediate term investment grade corporate and municipal bonds, U.S Treasuries and U.S. backed Mortgage Securities, Senior Bank Notes and Certificates of Deposit. Diversification among debt type with varying maturities is required, as well as multiple industries within corporate debt. 

This conservative fixed income ladder may be augmented with actively managed total return bond funds which have superior long term track records, especially during periods of rising interest rates.

 

High Income Portfolio:

For income investors willing to accept some risk in exchange for a higher return,

Oftring Investment Group supplements the Conservative Income Portfolio with a mix of lower rated High Yield Bonds, Dividend paying stocks, Convertible and Preferred stocks, REIT’s, MLP’s, BDC’s, ETF’s, Foreign and Emerging Market Debt and Equity, Closed End Mutual Funds, Bond Funds and Bank Loan Funds.  For the High Income Investor, Oftring Investment Group looks beyond conventional fixed income strategies, constructing a Multi-Asset Income Strategy in an attempt to produce income while keeping pace with inflation.

   

Also:

Special Situation Portfolio: 

For our clients with the financial means and risk tolerance willing to assume what we define as “businessman’s risk”, we identify special situation investment opportunities.  These are usually companies identified by research sources as having depressed market valuations despite brighter prospects ahead.  We may like the stock, bond or convertible preferred stock of the company.  In these concentrated investments, i.e. not diversified, there is a high probability of potential losses

Alternative Asset Strategies Portfolio:   

 

Alternative assets come in many varieties, but a common thread is their low correlation coefficients with both equities and fixed income. Hedge Funds employ these strategies in an attempt to beat the market averages.  Oftring Investment Group Clients’ access to these alternative asset strategies is available through various absolute return mutual funds, ETF’s, and Elite Access Portfolios