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Focused Mutual Fund Strategy
Mutual funds provide a cost effective vehicle for attaining well diversified exposure to different asset classes as well as different management styles with limited capital. A group of mutual funds can also add management style diversification to a large portfolio of individual stocks.
Waycross does not have ties to any family of funds, giving us the independence to buy and sell any fund in our 7000 fund universe. We invest only in no load funds. That is, we do not make any commission on the purchase or sale of any fund, allowing us to select only those funds we believe are best suited for client portfolios.
Our strategy is to:
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Work with a group of mutual fund portfolios, each portfolio encompassing different allocations to a cross section of asset classes and market segments;
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Select the mutual fund that best represents each unique class or market segment;
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Regularly review each fund held for continued inclusion;
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Regularly review each client account for actual allocations to each fund vs. targets, and rebalance as required.
Portfolio Creation
We have a number of mutual fund portfolios, each with unique historic characteristics of return and volatility. These are intended to meet the needs of investors with different objectives and constraints.
The portfolios may be viewed as a further diversification of our traditional individual security (individual stocks and bonds) portfolios, or as stand alone portfolios. As stand alone portfolios, each model assures diversification among asset classes and management approaches.
Examples of our mutual fund portfolios include:
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Global Growth - offers heavy exposure to stocks issued by companies from emerging and developed international markets as well as domestic stocks.
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Domestic Growth - includes funds representing all U.S. stock management styles (Growth, Value) and size (Large, Mid and Small Cap).
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Stable Growth and Income - high quality bonds in this portfolio stabilize returns. Developed international, larger capitalization U.S. stocks and commodities are also included.
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Socially Responsible Investments - holds funds that have been screened for inclusion in the socially responsible category and have exposure to both domestic and international stocks.
Buy Discipline:
We select mutual funds based on an analysis of:
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Historic performance relative to funds in the same category
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Fund manager experience
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Diversified investments within each fund
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Fund fees - we only purchase no load funds (no entry or exit commissions). We also screen for total fees as a percentage of assets.
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Tax efficiency
Sell Discipline
All funds held in client accounts are monitored regularly. We recognize that a fund's style may change. It may lose diversification, or lose its competitive edge compared to other funds in its category. Its management may change or its fees may go up.
Any of these events could lead us to replace the fund with another that better meets clients requirements. We also make regular adjustments to maintain appropriate allocations.
Caveat
While our mutual fund management process is disciplined and client focused, future performance cannot be guaranteed.
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