IS ANYONE ABLE TO ADD VALUE IN THE INVESTING PROCESS?
Net Worth has always worked hard to help our clients be successful investors. By structuring low-cost, diversified portfolios that are adjusted for risk tolerance and growth objectives we have a proven track record of adding value in this area. But, are there any other ways to add value? One additional way Net Worth Advisory Group has tried to add value is through our proprietary investment strategies. Read on to see how we did it.
THE TOP STOCK PICKS FROM THE TOP FUND MANAGERS
In 2016 Net Worth Advisory Group reached the ten-year mark of managing a strategy based on the top individual stocks from the top fund managers in eight different asset classes, called Best Stocks Best Funds (BSBF). The historical data over the past ten years of portfolio management with BSBF, suggests a strategy that consistently outperforms the respective benchmark indexes most of the time. This is great news for those of you that are currently invested in BSBF and perhaps something to consider for those of you that are not yet.
In this newsletter, we chose to highlight one of the eight separately managed portfolios in the BSBF strategy – the BSBF Large Value portfolio. Below is a fact sheet that will explain the strategy, cites the holdings and highlight the performance.
UNIQUE FEATURES: PERSONALIZATION AND TAX OPTIMIZATION
In addition to enjoying performance rewards, this strategy has some additional features that make it unique, like customization and tax harvesting. The customization feature allows a client to personally choose to exclude certain stocks or certain categories of stocks. For instance, a client that recently lost a loved one to lung cancer due to a lifetime of smoking may not want to own tobacco stocks. If they buy a mutual fund they will own whatever is in the fund, including tobacco companies. However, in the BSBF Large-Value portfolio all tobacco stocks can be excluded. The other benefit is a feature known as tax harvesting. Tax harvesting is a customization feature that provides the opportunity for clients to reduce their taxes in taxable accounts. This is a feature that cannot be provided through a typical mutual fund. Also, since we own stocks instead of fund shares we can tax loss harvest to reduce taxes in taxable accounts which is also something that can’t be done if you own a fund.
If you would like to visit with one of Net Worth’s fee-only advisors to learn more about this and other proprietary strategies click on the link below.