Endowments & Foundations
Bouchey Financial Group has been managing investments for non-profits and endowments since the firm’s inception in 1995. Our philosophy in these relationships is to make sure the trustees of the plans are fully aware of our investment management strategy and that they understand the risks and return potential of the portfolio. We achieve this through clear, concise and consistent communication with the trustees. Our overall goal in managing these portfolios is to manage risk while providing growth and income in the account.
Investment Policy Statement
The first stage of the investment management process is the development of the Investment Policy Statement (IPS). This document will include all the parameters by which the portfolio will be managed and will be updated if any changes are made to the investment management strategy for the portfolio. The document will also be utilized in our trustee meetings to provide a framework for our discussion on performance, investment strategy and our market outlook.
Strategic Asset Allocation – Broad Diversification
This concept is the foundation by which Bouchey Financial Group, Ltd. manages all client portfolios. To maximize the risk adjusted return of a portfolio, it is paramount that the portfolio contains multiple global asset classes that possess different performance and risk characteristics. Our investment team spends significant time researching the type of asset classes we utilize, the optimal investment vehicle to gain access to an asset class and the appropriate asset allocation for each client portfolio.
Tactical Asset Allocation – Valuation Matters
As part of our extensive investment research process, we are constantly evaluating the performance and the valuation of the various asset classes held in our clients’ portfolios. From a portfolio rebalancing perspective, we employ the time tested investment adage of “buy low and sell high” as we increase our allocation to asset classes we believe are undervalued and sell those asset classes that are overvalued. Using this approach can often require us to go against the crowd, but keeping disciplined in this area of portfolio management can be one of the biggest drivers behind successful long-term investing.
Minimize Expense Drag on Portfolio Performance
Whether it is transaction costs or fund expense ratios, minimizing portfolio expenses is paramount to maximizing investment performance. For the majority of our investment holdings we utilize index funds. These investment vehicles have substantially lower expense ratios than actively managed funds and as many studies have shown, the index fund for a particular asset class frequently outperforms the majority of respective managers for those asset classes. The trading platform we use allows us to buy and sell many of our holdings with no transaction costs to our clients, maximizing total return on their investment. Through our commitment to cutting costs for our clients we enable them to maximize earning potential in all aspects of their portfolios.