Policies & Procedures

• Position size:
• Selling discipline:
  • Sell when investment reaches full or over-valuation.
  • Sell when previously-set stop-loss price target has been triggered.
  • Sell to tax-loss harvest. Subsequently replace with a similar investment product.
  • Do not sell due to market volatility or market news. Over the long term, being fully invested is superior to any simple, formulaic selling strategy.
  • When active manager changes and there is no confidence in the new manager. Do not sell when active manager underperforms. All active strategies can underperform for three years or so.
• Inactive trading: we take a long-term investing approach and will prefer to not trade instead of to trade. This not only helps minimize transactions costs and taxes, but also helps avoid the emotionally-charged danger of short-term thinking.
• Rebalancing: generally only during major market moves, to re-align the portfolio closer, but not necessarily exactly back to (to avoid excessive trading costs), our asset allocation policy. Our rebalancing band is generally +/- 20% of the absolute policy weight of the individual asset class. We will examine the portfolio more closely during year-end to take advantage of any potential beneficial tax planning, or seasonal/ structural fluctuations.

 

• Policies & Procedures
• Compliance