The Purpose Alignment Method™ at Southeastern, MI-based Capelli Financial Services is our approach to organizing and reporting managed investment holdings. We want you to understand what you own, why you own it and what the expectations are for each holding.
We design a managed financial portfolio to include an engine (Growth) and an airbag (Stability). The engine powers the portfolio, serving as the primary driver of long-term returns. The airbag is designed to produce income and remain stable during economic corrections, reducing the volatility of returns.
We use this classification because it helps reinforce the role of your holdings.
GROWTH:
There are two categories within Growth: Core Equity and Dynamic Equity – both contribute to the objective of driving long-term portfolio returns.
Core Equity:
Core Equity is broadly diversified, low-cost exposure to global stock markets. Core Equity holds US and foreign stocks, small and large companies as well as growth and value managers.
Dynamic Equity:
Dynamic Equity represents the most active growth allocation. The components are Trending Sectors and Opportunities. For Trending Sectors we use a momentum based strategy to identify the three most attractive sectors in the US Large Cap universe. For Opportunities, we include investments that either mitigate risk or that present attractive prospects for appreciation – through low current valuation, promising strategies or special situations.
STABILITY:
The airbag of portfolios is designed to produce income and reduce the impact of economic corrections on your holdings. We maintain this stability characteristic by limiting investments to high quality fixed income investments with measured sensitivity to potential changes in interest rates.
Growth and stability. Confidence and Comfort. Contact our investment advisors and ask about our asset management services at CFS today.
