Our proven expertise in managing individual Large Cap Securities combined with a disciplined manager selection process in the Mid Cap, Small Cap and International asset classes provides our clients with diversified, actively managed portfolios well-positioned for long-term growth. In addition to our focus on long-term performance, we believe client portfolios should be managed with a keen eye on risk-control, tax implications and trading costs.
First American participates actively in the credit markets guided by the established risk tolerance and investment objectives of our clients, paying particular attention to safety, liquidity and yield concerns. Our comprehensive research and risk management processes effectively identify, measure, monitor and control risk consistent with prudent portfolio management. These risks include, but are not necessarily limited to, market risk, credit risk and liquidity risk. Fixed income portfolios offered include cash management, short duration and intermediate duration portfolios in both the taxable and tax-exempt arenas.
Alternative asset classes and investment strategies can offer several important advantages relative to stocks, bonds and cash. We feel exposure to asset classes, such as, Precious Metals, Commodities, Real Estate and Real Return Opportunities can offer several important advantages relative to stocks, bonds and cash. These assets provide performance that responds differently to traditional market forces and can often offer benefits such as lower expected volatility as part of an expanded portfolio.
Global Tactical Asset Allocation (GTAA)
In increasingly turbulent markets, investors seeking to reach their financial goals are searching for non-traditional investment strategies that are designed to reduce risk and volatility while producing positive returns. Our GTAA strategy provides the potential to create wealth in a changing market environment by having the flexibility to change with it. The strategy emphasizes risk management as a primary objective and attempts to generate attractive returns while reducing volatility and downside risk over a full market cycle.
ETF Enhanced Income
We pay considerable attention to asset allocation because this process has proven to be a significant contributor to overall portfolio returns. Through our ETF Enhanced Income Program, we can help investors quickly and cost-effectively invest in the market, while focusing on what is most important--choice of asset classes. This strategy places a priority on generating high-income yield while maintaining diversification and a prudent level of risk. The portfolio incorporates exposure to the U.S. large-, mid- and small-cap domestic equity universe, as well as to the international equity market. The fixed income allocation includes treasuries, investment grade corporate securities, and securities representing the Lehman Aggregate Bond Index.