INVESTMENT MANAGEMENT

MODERN PORTFOLIO THEORY

Asset allocation drives performance. In the discovery stage, performance expectations are defined. Based on a number of factors including time horizon, defined investment objectives, and the historical average rates of return for each proposed type of investment, the percentage of a portfolio to be earmarked for each type of investment, or asset class, is determined. Also considered is the amount of assumed risk for each type of investment based on the amount of historic average market value fluctuation.

Although past performance is not necessarily indicative of future results, the historical average numbers are important as their use allows us to create a starting point from which to comprise expectations for a portfolio’s performance.

Once the asset allocation decision is made and policy agreed upon, the firm employs on behalf of the client, funds and managers to manage each area of the portfolio. Each fund and manager specializes in managing a specific asset class or type of investment and that manager makes the decisions about which specific securities are to be invested in for that part of the portfolio.

INDEPENDENCE & TRANSPARENCY

In a world fraught with unethical and outright criminal wrongdoings and one in which conflicts of interest abound, Baughman Financial Group prides itself in acting as a fiduciary. We put our client’s interests ahead of everything else. We work for you.

As an independent firm, we are able to avoid conflicts of interest. The firm enjoys the ability to select investments, funds and managers based on what is right for the client, not motivated by some large investment firm or banks agenda or production quotas. Furthermore, every partner firm and organization that we choose to conduct business with is carefully selected so that it is the right fit to deliver the highest quality wealth management services to our clients.

The very nature of our due diligence process places our funds and managers under a microscope. We keep a very close eye on the trading activity and portfolio composition of our funds and managers. Part of the reason that you hire us is to perform such ongoing management oversight and due diligence.

The investments that clients own are held by outside custodians such as Pershing LLC, Fidelity and Charles Schwab. Client’s funds are never co-mingled with those of the firm. Client’s accounts at their respective custodian are always titled directly in the name of the client or client’s controlled entities and monthly statements are provided directly from the custodian. Performance reporting is completed by our research partners with the daily value of securities information provided by electronic feed directly from the respective custodian firm.