Naotsune Alliance | Investment philosophy

Investment philosophy

Investment Approach

Developing and managing our clients’ portfolios is predicated on our unique investment approach. We include fundamental assumptions and risk-factors when generating market engagement structures in order to achieve investment success; among these factors are the following:

Asset Allocation

The returns of a portfolio will be more influenced by the particular mix of investment classes than by any other single factor. A study conducted by our research department confirmed that more than 90% of the variation of returns among portfolios are based on the asset allocation strategy, with the remaining small percentage being attributable to individual security selection and market timing decisions. Therefore, our allocation techniques cover asset class categories from capital markets, bonds, securities and alternatives to domestic companies’ stocks, international large and small cap companies’ stocks, and emerging market securities. We set specific targets for each of these categories when we map-out your investment strategy.

Value Criteria

Numerous studies have demonstrated that stocks trading at low multiples of their book-value per share provide higher returns in the long run. If one particular market segment is to be identified as the most lucrative over another, then the value-stocks would overweight the growth stocks (stocks with high price-to-book ratio). We typically give client portfolios exposure to the broader markets supplemented by additional investments in value stocks; however, we only make specific allocations to growth stocks whenever the opportunity arises.

Size Criteria

It has also been demonstrated that the size of a company influences its expected return, with smaller companies offering higher returns than larger companies over the long run. Therefore, a well-structured portfolio strategy will recommend significant allocation of smaller-company stocks.

Fees and Expenses

The possibility of exercising full control over the future gains of any particular investment, or asset class, is infinitesimal. That is why we focus on calculating and optimizing the degree to which those returns are affected by ongoing fees and expenses. We prioritize investments with low ongoing expense ratios over those with relatively high ones, regardless of whether or not the investment vehicle was able to overcome its high expenses in the past.

Our Process

Throughout our financial planning process, we ask questions, we listen carefully and we first learn what is important to you prior of creating your financial independence roadmap:

  1. Discovery Phase: At no cost or obligation to you – we get to know you and gain a better understanding of your financial and life goals, and you get to know us through our work ethics and style, enabling us to build the foundation for a long-term business relationship together.
  2. Project Phase: It is designed to educate you on the financial issues specific to your situation, with personalized feedback that addresses the areas you are most concerned about.
  3. Ongoing Management Phase: After we have done the main task of getting your financial world in order, we are there for you regardless of the planning issue – giving our clients stable support whenever they are ready to act on their goals and dreams.

Planning the Roadmap to Your Future

In general, our clients have a clear vision of where they want to be in the future; therefore, we utilize our collective market know-how and insight to help them get there. You may be looking to retire early and travel the world, or purchase another property, or designate a single partner to manage your entire wealth, in any case, we are here to offer irreproachable guidance to you as you navigate towards achieving your personal vision of an ideal future.

Getting to your destination dictates that predictable challenges should be neutralized through careful planning, analysis and coordination, as the unpredictable scenarios remain to be contained in due time by the ability and willingness to adapt. The starting point is determined by a clearly articulated vision of where you want to be in the future.

From there, Naotsune Alliance can serve as your financial guide by helping you identify the necessary portfolio trajectory and goals, providing you with the best route to get there, readjusting your investment strategy especially when unpredicted or critical life events may interfere and might negatively impact your end result. Building the roadmap towards your ideal future is more than just business; it is as personal to us as the reason we come to work every day.