Who We Serve:
Individuals | Trusts | Foundations | Retirement Plans | Corporations
Asset Allocation is the cornerstone of risk management and a key component in preserving wealth. Primary goals are set with clients between equity and fixed income objectives based on the client’s cash withdrawal requirement, the time horizon for the investments, and the client’s tolerance for risk and price volatility. Over time, securities are then purchased to fulfill the target allocation and subsequently re-balanced as needed.
We base our investment principles on three key elements. The first is equity and sector analysis which utilizes an earnings growth and fundamental valuation analysis. This will determine which stocks or sectors are reasonably or under priced and have favorable potential to make money for our clients over the next 12 to 24 months. Secondly, an emphasis is put on the preservation of capital through the use of selling disciplines when stocks have reached fair or excessive valuation levels and have a good likelihood of declining in value. Third, our investment discipline does not force equity commitments in an extremely over-valued market.
The investment approach is based on a "bottom-up" stock selection procedure. Our screening process is based on our in-house valuation techniques, which consider factors such as earnings growth rate, corporate indebtedness, return on equity, market sentiment and technical indicators.
Buying a stock is just part of the investment equation. Selling securities is as critical as buying. We continue to monitor stocks under our supervision to ensure that the securities are maintaining the same criteria which originally allowed us to purchase them. If the company's fundamentals deteriorate, or basic assumptions change, we will sell the stock.
Fixed Income Investing
The primary objective for a fixed income portfolio is to have stable and positive returns. We will add value constructing and managing based upon client needs, objectives and restrictions. We will typically reduce credit risk by investing in U.S. Government obligations, investment grade corporate and tax-free bonds. Interest rate risk is reduced by limiting the duration of our portfolios (7 years or less).
We will utilize several bond dealers when purchasing bonds thus individual security returns can be enhanced by informed purchasing. Total return is enhanced by structuring diversified portfolios based on existing and anticipated yield curves. Our goal is to capture 80-90% of long term bond yields while minimizing the risk of loss of capital during periods of rising interest rates.
Investment Reporting Services
In addition to monthly statements from your broker, Crescent Sterling provides a full range of additional investment reporting.
1. Summary of investments by asset class, including summary of cost basis and summary of market value.
2. Listing of individual securities by asset class, including cost basis and market value
3. Period performance of the account.
4. Preliminary Year-end Tax Reporting
5. Annual Reports and Client Review
Retirement Planning Services
At Crescent Sterling Ltd, we firmly believe the key to a successful retirement is to set reasonable goals and have a plan for reaching them. We understand that every client is different; therefore, every retirement plan should be different also. With input from you, our goal is to develop a plan that takes into account your individual situation and tolerance for risk and create an income stream that can be sustained over your lifetime.
Proper estate planning is essential to passing on wealth from one generation to the next. With the help of your attorney and CPA, we will assist you in determining what legacy you would like to leave behind and how to ensure it is executed according to your wishes.
401K Consulting Services
For Employers that need assistance in 401K construction, advice on fund offerings, as well as a multitude of other inquiries that come with 401K programs we provide hourly consultancy services.
Hourly Consultant Services
Investment management services are normally charged based on a percentage of the market value of assets under supervision. Financial planning and consulting services are normally charged on an hourly basis.