RIDLEY ASSET MANAGEMENT, LLC

Our guiding principles of portfolio design -- Allocate, Invest Monitor and Rebalance:

Allocate

Ridley Asset Management focuses on financial, statistical and valuation metrics to determine the appropriate asset class weightings within our Strategic Asset Allocation Model (SAAM). The SAAM is divided into four major asset classes -- U.S. Equities, International Equities, Fixed Income and Diversifying Assets (which includes REITs, inflation protected securities, commodities and currencies). Within each asset class in the Ridley "All-Asset" Core, Explore and Core & Explore Portfolios, allocations may be divided further into sub-asset classes. For example, U.S. Equities can be divided more narrowly by market capitalization (large-cap, mid-cap, small-cap, micro-cap), growth and value factors, or industry sectors.

Invest

After determining the asset class weightings within the SAAM, Ridley Asset Management screens our database of Exchange Traded Funds (ETFs) and other index-linked securities to select the appropriate investment to implement the asset allocation. The selection criteria includes index composition, correlation, expense ratio, liquidity and market outlook. Using ETFs allows Ridley Asset Management to attain broad or narrow exposure to major asset classes and sub-asset classes.

Monitor and Rebalance

Our Portfolios are rebalanced based on strict disciplines to maintain their original risk profile.

Client Portfolio Design

For each client's portfolio, the initial asset class weightings and underlying securities are adjusted to suit their unique investment situation. Over time adjustments can be made to accommodate changes in a client’s judgment of risk tolerance, investment time horizon and other factors. 

Using Separately Managed Accounts allows Ridley Asset Management to utilize tax minimization strategies including tax loss harvesting, offsetting gains and losses, and making asset allocation decisions across taxable and non-taxable account.

"The secret of success is consistency of purpose."