Portland Private Wealth Management Blog

Listen to PodcastWe like a core/satellite approach because it has several features in terms of portfolio design that is often ignored by rigid ‘check-the-box’ wealth management strategies. First, it has built-in modularity and by that we mean it can be easily adjusted and tweaked. For instance, suppose you wanted to increase you exposure to consumer cyclicals, financials and technology stocks. This could be easily accomplished by purchasing exchange-traded index funds for the core or satellite portion of the portfolio. Let’s suppose you wanted to reduce your exposure to energy and basic material stocks or increase your weighting to income producing instruments within in your core portfolio. By design we build the portfolio so that the exposure to any individual security, industrial sector or asset class is readily transparent and easy to modulate. The core/satellite approach enables us and provides you the flexibility to be more opportunistic or more defensive when market conditions change. A common