We have earned an unsurpassed reputation for offering our clients the highest quality of customized asset allocation strategies

SCM has earned an unsurpassed reputation for offering our clients the highest quality of customized asset allocation strategies. Our valued clients entrust portfolios of equity and fixed income assets in excess of $2 billion to SCM for supervision.

We provide our clients with the tools they need to understand their individual risk and return profiles and to develop strategic, long-term asset allocation programs. Assets under SCM supervision have grown considerably. Our successful investment approach is based on four fundamental principles:

  1. Long-term performance is overwhelmingly influenced by strategic asset allocation.
    Studies show that more than 90% of a portfolio's performance can be attributed to its asset allocation. Our materials explain financial risk and can help participants prioritize their financial needs and assess their risk tolerance to help them develop a successful investment strategy.
  2. Asset allocation requires an array of investments each representing one of the major asset classes.
    Diversification is more than stocks and bonds - it's knowing how much to allocate to each asset class, and having an array of asset classes to provide diversification. We have identified asset classes that will allow the asset allocation process to effectively diversify and give exposure to various investment styles and objectives within the broad categories of stocks, bonds and cash.
  3. Specialized expertise is required and disciplined investment objectives must be maintained to manage an asset allocation program.
    It has become increasingly rare to find a successful money manager who attempts to manage more than one specific investment style. Rather, top-performing money managers tend to direct their energies and expertise toward mastering one specific segment of the market. SCM believes that asset allocation can be best achieved through the selection of highly accomplished independent investment managers to manage each asset class.
  4. Continuous monitoring of each manager is essential to ensure strict adherence to the investment objectives of each asset class.
    We monitor each manager's performance and investment style for adherence to the objectives of the assigned asset class and for the results produced in comparison with the performance of that asset class as a whole. Since our asset allocation process utilizes independent portfolio managers, we can be completely objective in the review and selection of fund managers for each investment style. We seek superior portfolio management and adherence to our criteria. When and if warranted, we can replace a fund or managers. This structure provides a mechanism for us to respond effectively to investment concerns without undue disruption to your asset allocation choices.

For more information, contact your SCM Financial Consultant.