As a registered investment advisor, Couture Financial, Inc. has a fiduciary duty to its clients under the Investment Advisers Act of 1940. The SEC report that led to the Act’s passage stated that the primary function of an investment adviser is “to render to clients on a personal basis, competent, unbiased, and continuous advice regarding the sound management of their investments.” .This directive is at the heart of all Couture client relationships.
Couture Financial investment approaches are based on the use of active risk management to minimize the potential for client assets to be lost to market downturns or as a result of investments that fail to perform as expected. Read the current Couture Financial Market Perspective.
Passive management leaves portfolios subject to the vagrancies of the market. With a buy-and-hold investment strategy, years of progress are frequently erased in a single bad year with devastating consequences for investors. In comparison, a professional program of active risk management is designed to achieve sustained growth.
Applying Modern Portfolio Theory
In the 1950s, Nobel Prize winner Harry Markowitz revolutionized investing with modern portfolio theory, based on the principle that investors may minimize market risk for an expected level of return by constructing a diversified portfolio. While Markowitz anticipated rebalancing the portfolio periodically to maintain its original allocation, Couture Financial takes modern portfolio theory beyond the limited investment options and market capabilities of the 1950s to build diversified portfolios of low correlation investments that adapt to changing market conditions.
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Recognizing that markets are not static, but dynamic, our objective is a more efficient portfolio in today’s investment environment that has a high rate of return and less volatility (risk). |
Within the master portfolio, we utilize a diversified core asset base designed for stability. Additional satellite positions are traded more actively, allowing parts of the portfolio to be managed with different risk tolerances. This allows us to more closely match our clients’ comfort levels to the market volatility levels.
"Value Oriented Selection"
This method uses fundamental evaluation techniques developed by Benjamin Graham and David Dodd. This has been one of the most successful approaches to achieving profits in the stock and bond markets for the past 70+ years. In fact, these basic techniques have been so widely accepted that Graham and Dodd's book Security Analysis is still used as one of the primary study materials to receive a college degree as a Professional Securities Analyst. Mr. Graham pointed out in his best-selling book The Intelligent Investor that these techniques provide a special "Margin of Safety" for the investor.
Applying these techniques allows Couture Financial to provide continuous asset management on a scientific and objective basis. This consistent approach avoids the plight of most money managers who end up chasing the markets for short-term yields. These methods substantially increase the potential for consistently higher returns and greatly reduce the risk of loss of capital and purchasing power.
All client accounts are held in the client’s name or as designated by the client. Couture Financial has no access to the funds in the accounts with the exception of client pre-authorized automatic fee withdrawals once a quarter. Our authority over your account extends only to directing the custodian as to which funds and in which proportion your assets should be allocated. You will receive monthly or quarterly statements directly from the custodian as well as our quarterly account analysis.
DISCLOSURE: All investments have the potential for loss as well as profit. No current or prospective investor should assume that future performance results will be profitable or equal the past performance. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or investment approach will be profitable. The information provided here is intended to be general in nature and should not be construed as investment advice or as a recommendation of any specific fund, security, or investment approach. Investors should consult with a financial advisor before investing. |
