Blue Ocean

global wealth

Investment Advisory
Financial Planning

Wealth Management

Asset Allocation

The Investment Strategy Group (ISG) at Blue Ocean Global Wealth is committed to providing clients with superior asset management solutions and services. We believe that an independent team, with institutional experience committed to asset allocation and due diligence, is advantageous when advising clients on investment strategy and manager selection. We feel this approach is critical to helping clients navigate increasingly complex markets. Our portfolio construction process is client specific and will depend largely on return objectives, time horizon, risk tolerance, tax considerations, and other constraints. Such guidelines are often times dictated by an investment policy statement.

Asset allocation provides diversification by dividing capital among different types of investments such as stocks, bonds, alternatives, and cash. We understand that no one manager will outperform across asset classes. Assembling a balanced group of uncorrelated assets can help mitigate market volatility and provide an optimal risk adjusted return. In other words, diversification identifies investments within each asset category that may perform distinctively. We consider an expansive range of companies, industry sectors, and countries within each asset category. These investments are then organized by philosophy or style, including active vs. passive, long vs. short and growth vs. value. We support key asset allocation decisions and leverage our intellectual capital to capture the benefits of a well-constructed, highly diversified portfolio.

The ISG practices both strategic and tactical asset allocation. Strategic asset allocation relies upon the long term expected returns of each asset class. This approach retains the original allocation over long periods of time rather than making adjustments or accommodating current market conditions. Alternatively, tactical asset allocation takes an overweight or underweight position in each asset class after appraising the asset’s value relative to its current market price. Tactical asset allocation requires investment knowledge and allows for more flexibility. We synchronize asset allocations models to market conditions and consistently evaluate the opportunity cost of deploying capital to alternative investment strategies. This approach is timely, nimble, and flexible. Rebalancing, which occurs when market activity shifts portfolio allocation weightings outside the pre-specified range, may occur on a calendar or discretionary basis.

We offer access to a broad range of investment portfolio solutions, including equity and fixed income strategies across global developed and emerging markets, as well as absolute return strategies and model portfolios. We delineate between market return (beta) and manager skill (alpha) to address client specific needs. Our comprehensive analysis of the investment universe and our open architecture help us deliver the most appropriate investment strategy. Portfolios may include separate accounts, mutual funds, exchange traded funds, stocks, bonds, unit investment trusts, closed-end funds, commodities, real estate investment trusts, derivatives, and alternative investments. Fees are asset based and generated from portfolio advisory services.

Schedule phone consultation to learn about a financial planning relationship with Blue Ocean Global Wealth