Investment Selection

Once we determine an appropriate strategic asset allocation for your portfolio, we move on to select individual funds for each asset class. Our partnership with a nationally recognized institutional investment consultant provides us access to a universe of more than 10,000 non-proprietary investment products, including mutual funds, exchange-traded funds, interval funds, and private investments.

  • We incorporate both active and passive funds based on market efficiency. In more efficient markets (e.g., U.S. stocks) we prefer to use more passive strategies. In less efficient markets (e.g., emerging markets), we tend to use more active managers.

  • We allocate to both growth and value styles, though as value investors, we tend to overweight value strategies.

  • We prefer to hire managers that stay fully invested to minimize the opportunity cost of too much cash.

  • We consider a range of vehicles, including mutual funds, exchange-traded funds, interval funds, and private fund structures, and select the vehicles that best meet each client’s needs.

  • We are sensitive to each strategy’s tracking error to minimize “blow-up” risk, where a single manager’s underperformance destroys all the excess return generated by other managers in the portfolio.

Key criteria for evaluating and selecting funds include total assets managed, holdings analysis, clearly articulated process, sufficient manager tenure, and historical performance that is consistent with the defined process.

Frequently Asked Questions

What Our Clients Say

This testimonial has been given by a current client of Heritage Financial Services. No compensation was provided for this testimonial.

Awards & Recognition

Selection criteria used to award each of these recognitions is available by clicking on the award logo.