What does investment management include?
We will help you making all your decisions and offer several investment management services. Investment strategy includes:
- Analyzing and allocating your assets
- Developing an evidence-based investment portfolio
- Recommending new investment funds
- Estimating tax loads
Our investment management style makes use of only extremely low cost, pure no load passive investments. We use Dimensional Fund Advisors (DFA), Vanguard, Exchange Traded Funds (ETFs) and other institutional groups.
Why call a Chartered Financial Analyst?
The CFA certification is the most respected and recognized investment designation in the world, which combines thorough academic knowledge with an up-to-date portfolio management qualification, and ensures a compliance with professional standards of ethics. A CFA is a recognized expert in wealth management and investment strategy who will help you reach your financial goals.
Why would I use DFA funds? I have never heard of them.
The types of funds we use in our investment management strategies offer a steady growth to your investment portfolio. Here’s an interesting story that will change the way you see investing strategies:
I met with a prospective client, a well-known Bay Area attorney, a few days ago. He has been managing his assets with help from various advisors and has passed through the stages of maturity as an investor:
Childhood: What is a stock?
Adolescence: I want stocks that will beat the market!
Younger Adult: I just lost a lot of money in stocks¦
Finally he has entered the Full Adult stage of development and is ready to consider evidence based investing.
Evidence based investing does not offer great stories about individual stocks. Evidence based investing does not trying to guess the direction of interest rates, or the growth of certain sectors or economies using macro-economic predictions.
What evidence based investing does is (1) look at what has worked in the past, (2) determine whether the past performance was a fluke or whether it has a statistically meaningful probability of recurring and (3) whether there is a reason that explains why something worked in the past.
Look through literature by the Nobel prize winners. Read the thoughts of Warren Buffet. The answers are clear. Low cost, broadly diversified passive investments will beat active management every time. Over one year or three years it’s a toss up, but the more your widen the window the more likely passive funds will win out.
Dimensional Fund Advisor (DFA) is a unique fund complex. It was formed and is run by academics adhering to the most stringent standards of evidence based investing. All DFA funds are passive. The equity funds lean into true value and micro-cap. While nothing is guaranteed, DFA chooses overweight true value and micro cap as there is a statistically meaningful probability of such a strategy beating the market in the future.
You might not have heard of DFA, but the smartest people in the world have. Now my attorney friend and you the reader do as well.
Talk About Your Investment Strategy with a Chartered Financial Analyst (CFA) in Bay Area, CA
Keir Oxley, the Principal at Double Bay, is a CFA and has a strong experience in managing investment portfolios. Contact Us to set up a consultation and we’ll make sure your investment portfolio management is efficient and guarantees strong returns.