Custom Investment Portfolios
Portfolios are Separately Managed Accounts, customized to fit the needs of the client. Portfolios can be:
- Growth, which is an equity-only portfolio
- Aggressive Growth, which is an equity-only portfolio
- Growth and income, which is an equity-only portfolio including growth stocks and dividend paying stocks
- Balanced, which is a portfolio of equities and fixed income securities
Portfolios can be domestic, international or a combination.
In the case of international equity and fixed income investments, no-load and low cost mutual funds may be used, otherwise individual positions will be selected for the portfolio.
Factors that are considered when creating a portfolio are:
- Tolerance for risk
- Growth objectives
- Current income requirements
- Investment time horizon
William Rutherford will meet with the client to determine the goals and objectives of the portfolio; once the goals are established, investment objectives will be written. The purpose of the written objectives is to guide Rutherford Investment Management in the investment of the portfolio. The written objectives may be amended in writing, at the client’s discretion. The objective will contain a strategic asset allocation to form an appropriate blend of equities, fixed income and cash or equivalents. The aim of this process is to maximize long term performance while minimizing volatility. The asset allocation will be reviewed on an annual basis at a meeting with the client. The portfolio will be monitored for compliance with the client’s goals and may be rebalanced on a quarterly basis if need be.
Portfolios are monitored for compliance with client goals and investment objectives. Market conditions may require rebalancing of the portfolio to remain in compliance with client’s asset allocation. This hands-on, personalized portfolio management is the centerpiece of our portfolio process.
Taxable accounts are monitored for overall tax implications given each client’s profile. Portfolios will be managed for tax efficiencies. Securities’ individual cost basis and tax liability timing are taken into account in an attempt to reduce taxes on realized capital gains. Information on taxable gains and losses is provided to clients or their accountants during the fourth quarter.
Account Size & Fees
Fees for management of the portfolio and client service are 1.25% of the assets under management. One fourth of the annual fee is paid each quarter based upon the assets under management at the end of the quarter. No portion of the fee is based upon portfolio turnover or performance. Transaction costs are borne by the portfolio, but are by design low and, owing to low turnover, kept to a minimum amount.