Each “Best Practices” portfolio has a combination of up to four different indexes. Every index is comprised of all of the companies in our sector screened universe* that follow their respective best practice board policy. We buy each stock directly into your account and update our policy compliance list annually based upon available public data. The hundreds of companies in your portfolio represent all of those who have adopted Board Policies that incorporate broader community values into their operational guidelines.
*No thinly traded or under $2 stocks and no Tobacco; Oil, Gas and Coal; Defense Primes; Material; Agricultural Chemical; Casinos and Gaming or Small Arms stocks.
Each client’s account is assigned to the appropriate risk level allocation group based upon specific client instructions regarding maximum risk budget and/or the results of our risk tolerance questionnaire. We use U.S. Treasuries in increasing proportions in our attempt to offset some of the risk associated with stock ownership. Our goal is to produce the returns that you expect at the risk level that you require.
We have recommended that you use Folio Institutional to custody your account and to execute our orders. We take advantage of the commission-free trading windows that they make available and, in the absence of a changing risk outlook, we limit turnover (activity) in your account to annual index updates. Your investment advisory and custodial expenses are spelled out in their respective agreements and while varying with account size, fall between .30% and .50% per year.