Investment Approach

Broad Reach Wealth Management is an independent registered investment advisor in Sarasota, FL. We build a customized investment strategy for each client that is deeply rooted in over fifty years of time tested research.

Our approach is always completely focused on each client individually. Each client's need for return, risk tolerance, time horizon and life goals are different.

Taking these and other factors into consideration, we design an investment strategy to help you reach your own individual goals. Our aim is to get you where you need to go as efficiently and as comfortably as we can, while taking the least amount of risk.

We believe that building an investment approach considering rigorous, time-tested financial science is the best path to sustainable and explainable results. Academic research continually shows that a disciplined strategy focusing on asset allocation and portfolio engineering, global diversification, multi factor risk models and minimizing transaction costs and taxes tends to lead to better long-term results than trying to time markets or pick the next hot stocks or managers.

By educating each client on the fundamentals of our philosophy, we ensure that we have built a strategy that makes sense to them and helps them to be comfortable in all market environments. Some of the principles that drive our investment philosophy are:

Asset Allocation Drives Returns

A well known and widely accepted study* in 1991 concluded that it is asset allocation and not market timing or stock selection that is the primary factor in determining why different portfolios have different returns. The study found that over 91% of a portfolio's return can be explained by asset allocation decisions. We design our portfolios by considering each client's personal short-term, mid-term and long-term goals and risk tolerance using disciplined, time tested asset allocation strategies, rather than guessing on which stocks, sectors or managers will be the next big winners. *Brinson, Singer & Beebower, 1991

Diversification is Essential

Portfolios containing a broad mix of asset classes can produce higher compounded returns with less volatility than less diversified portfolios over time.

Markets Work

Although markets can be volatile in the short-term, markets are generally efficient over longer periods. Our disciplined approach focuses on capturing the returns of each asset class over time, and providing additional value by avoiding inefficiencies common to traditional active management and traditional indexing strategies as well as common investor behaviors that can be detrimental to a portfolio.

Some Types of Risk & Return are Related

Nobel prize winning academics and award winning financial economists have now identified multiple systematic sources, or factors, of risk that explain investment performance: market risk (premium for owning equities vs. bonds), size (small cap premium) and price (value premium). Other factors recently identified are momentum and profitability. It has also been shown that diversifying out other types of risk from a portfolio can be beneficial.

Costs & Taxes Must be Managed Properly

Investment costs and taxes due to certain types of investment strategies can and should be controlled. If not carefully managed, taxes and expenses can have highly adverse effects on portfolio performance over time.

Broad Reach Wealth Management's fee based investment advisor services help to eliminate the biases, hidden costs and conflicts of interest found in commission or product based platforms. And, with no pressure to direct you into a parent company's proprietary products, we are free to search out the best solutions for our clients from among the finest options the financial industry has to offer. Fees are totally transparent and any conflict of interest that exists will be fully disclosed.

Our investment advisor services include:

  • Thorough analysis of current portfolio.
  • Create an investment policy that is aligned with your risk/return profile and circumstances.
  • Construct portfolios focused on your specific needs, time horizon and risk tolerance. Tax efficiency, where appropriate, risk/return optimization and low cost management are emphasized.
  • Implement the strategy and continuously monitor the portfolio to ensure you remain on track.
  • Periodically rebalance the portfolio.
  • Review your tax and overall financial condition regularly.
  • Adjust to life changes and changes in market/economic conditions.
  • Manage all operational issues and legal requirements associated with qualified plans, trusts and IRAs.
  • Report performance quarterly and compare against appropriate benchmarks.
  • Ongoing search for new investment opportunities or improvements to strategy. Periodic meetings and discussions.
  • No proprietary products or commissioned based investment products... An unbiased consultative approach from an independent investment advisor.