Meritage professionals work with clients to establish the appropriate policy allocation consistent with their overall objectives, time horizon, liquidity needs, tax circumstances, attitude toward risk, and other investments. Custom guidelines that define the asset mix parameters for stocks and bonds are established and reviewed periodically with clients to assure they remain relevant to the client’s circumstances.
Most Meritage private clients utilize fixed income as a portion of their portfolio to generate additional income and reduce overall portfolio volatility. We manage both taxable and taxexempt fixed income strategies. Both strategies focus on income generation and safety of principal. Risk is controlled by maintaining low duration and high quality bond characteristics.
Investment guidelines will often reflect ranges on asset class exposure, giving us some discretion in implementation. Tactical allocation between assets classes or equity styles can be opportunistic, but as we address in our recent paper, Active Allocation – The Unfortunate Truth, we are respectful of how difficult it is to add long-term value by this practice.