Investment Philosophy
The Madison Asset Advisors investment philosophy is based on the following basic principles:
Our investment advice will vary depending upon each client's specific financial situation. The investment process begins with creating a customized Investment Policy Statement (IPS) defining each client's investment objectives, risk tolerance, time horizon, financial horizon, financial information, liquidity needs, and other suitability factors. We will then determine asset class and market sector allocations that best correspond to the IPS and construct a portfolio utilizing information and data from a wide variety of third party sources.
The investment process emphasizes being highly diversified, with investments made in generally low-cost mutual funds and exchange-traded funds. Depending on specific client circumstances and objectives, individual equity securities, warrants, corporate debt securities, commercial paper, certificates of deposit, municipal securities, investment company securities, US Government securities, and options contracts on securities can also be included in portfolios.
This approach can be very effective, but of course cannot ensure investment success or prevent loss in a declining market. Past performance is no guarantee of future results. Any restrictions and guidelines dictated by the client may affect the composition of the portfolio.
- Develop highly diversified portfolios that may include a broad range of asset classes and market sectors.
- Utilize low cost investment options when feasible.
- Emphasizes holding investments for long periods of time.
- Periodically reallocate investments, as conditions warrant.
- Rebalance strategically as needed.
Our investment advice will vary depending upon each client's specific financial situation. The investment process begins with creating a customized Investment Policy Statement (IPS) defining each client's investment objectives, risk tolerance, time horizon, financial horizon, financial information, liquidity needs, and other suitability factors. We will then determine asset class and market sector allocations that best correspond to the IPS and construct a portfolio utilizing information and data from a wide variety of third party sources.
The investment process emphasizes being highly diversified, with investments made in generally low-cost mutual funds and exchange-traded funds. Depending on specific client circumstances and objectives, individual equity securities, warrants, corporate debt securities, commercial paper, certificates of deposit, municipal securities, investment company securities, US Government securities, and options contracts on securities can also be included in portfolios.
This approach can be very effective, but of course cannot ensure investment success or prevent loss in a declining market. Past performance is no guarantee of future results. Any restrictions and guidelines dictated by the client may affect the composition of the portfolio.