Investing with FSA Investment Group
At FSA Investment Group (FSA), we provide a customized approach to investment management that is designed to preserve and grow our clients’ capital. We believe that providing sound, independent advice is important, and as a fiduciary, we will always act in the best interests of our clients.
A well-designed portfolio requires an understanding of our client’s needs, goals, and objectives (client expectations). We combine our client’s expectations with our value driven investment process to minimize risk and focus on growth. Additionally, we utilize diversification as a tool to reduce volatility and stay consistent with our investment approach.
FSA Investment Group’s Philosophy:
- FSA-IG’s beliefs are centered on the concept that overall markets are inefficient, price matters and risk is important.
- FSA-IG utilizes an investment process to improve invested time, reduce probability for error and create disciplined, repeatable and teachable means to analyze and track investments.
- FSA-IG believes patience and discipline are essential to long-term investment success. Our investment decisions are not based on emotions.
- FSA-IG utilizes investment frameworks to organize thought processes, gain an analytical and behavioral edge, identify patterns that historically have led to alpha, and make unbiased investment decisions more effectively.
- FSA-IG’s investment framework allows for organization of facts into more digestible and analyzable forms, so we can focus on what is important and compound knowledge.
- FSA-IG is watching and analyzing capital markets to identify and seize upon opportunities
FSA Investment Group’s Process:
When a client chooses FSA as its investment advisor, it is essential that we understand the client’s expectations. Once we assess those expectations, we then determine the client’s ability and willingness to take on risk. Once we assess the willingness to take on risk, we then build the appropriate portfolio to meet the client’s expectations.
FSA uses risk-based models to build client portfolios which are divided between growth and income-oriented investments. More aggressive portfolios contain more growth investments and more conservative portfolios contain more income investments.
FSA’s six asset classes consist of the following:
- Core Fixed Income
- Domestic Equity
- International Equity
- Diversified Alpha
Long-term Target Allocation – Each asset class has a strategic, long-term target allocation. However, markets and asset classes present opportunities through imprecise valuations which allow us to buy or sell investments at desirable prices.
Tactical Portfolio Allocation - FSA will at times tactically shift portfolio asset allocations higher or lower based on valuation. This tactical approach includes shifting to a defensive posture when valuations do not warrant investment opportunities elsewhere. Having a long-term mindset and being dynamic is important, because we believe that overpaying for an asset can destroy long-term investment returns.
Investment Vehicle Selection - FSA utilizes outside money managers, individual securities, mutual funds, and exchange traded funds. Selecting investment management firms to manage assets successfully is one of the most significant decisions we make on behalf of our clients. We also limit the number of managers we recommend, which allows us to develop a deep, thorough knowledge of the managers we use.
Ongoing Due Diligence - Additionally, we partner with Highland Associates in Birmingham to help us maintain a research management database which allows us to capture pertinent research, record historical money-manager decisions, and avoid any managers who are not compatible with our philosophy.