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Sector Focus Portfolio Management
Nausets approach to managing
investment assets combines the best elements of current asset allocation
methodology with a strategic bias to capture investment opportunities in
select sectors or industrial categories, such as technology, health care and
finance. We call our approach Sector Focus Portfolio Management.
Using the Sector Focus approach to construct an investment portfolio, we
allocate your assets across three levels:
-
Split total assets between
stocks and fixed income;
-
Apportion stock and fixed income
assets into three sector-specific blocks in each asset class; and
-
Invest in securities
within each sector allocation. The chart below identifies the six
major sector areas.
A sample Target Asset Allocation
might look like this:
|
Account
Asset Allocation
|
Stock
Sector
|
80%
|
Total Market
|
25%
|
Select Sector
|
40%
|
Emerging
|
15%
|
Fixed Income
Sector
|
20%
|
Municipals
|
10%
|
Taxable Bond
|
5%
|
Cash
|
5%
|
In our Sector Focus Portfolio
Management style, we overweight specific sector opportunities that we
believe will increase long-term performance, while minimizing risk through
sector diversification and underweighting less attractive sectors. Although
our asset allocation is primarily sector driven, we also track and manage
portfolio diversification in stock cap size, growth/value stock tilt and
U.S./international stock split to add another level of risk control.
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