Our weekly blog posts, over the previous 7 weeks, have focused on the changes in the investment markets throughout the past 12-15 months. You have read our thoughts on rising interest rates, bond valuations, the effects of stimulus and government policy, global investing, the dangers of trend following, and the importance of strategic diversification. We hope you have found these blog posts informative and helpful.
As we have highlighted the unusual amount of recent investment market changes, the timing is appropriate to remind you of the importance of the Investment Review Committee (IRC) at Master’s. The IRC is comprised of four of our team members at Master’s. While our IRC has existed for many years, it has become essential to the way we do business within the past decade. The following points should add clarity to that statement.
- Within the last 10 years, our IRC has been creating, and regularly monitoring the MA & UMA portfolios, in which many of you have invested. These portfolios are designed with extra attention given to strategic diversification and specific factor weightings. Each quarter, these portfolios get “put under the microscope” to see how they are performing relative to their peers and the broader markets. This portfolio design process, now done in-house by our IRC, was previously outsourced.
- Our IRC has developed a strong relationship with DFA (Dimensional Fund Advisors). DFA just might be “the largest money manager you have not heard of.” They simply do not spend much money on public advertising. In addition to currently managing about $614 billion in investments, they provide us with a tremendous amount of portfolio analysis and “back office” research and support in the areas of investing and market analysis. The investment community has long recognized their academic approach to investing as industry leading. Barron’s has recently named DFA “the #1 Fund Family for the year 2022”! That is quite an honor, and it recognizes how effective their investing approach was during a tumultuous year.
- Last, but certainly not least, our IRC gives you the confidence that a multiple-person team is actively engaged in the process of designing, monitoring, and recommending investments to you. In many financial advisor offices, only one or two individuals are doing this process. We have in-depth discussions and challenge each other’s thought processes, ideas, and rationale. What results is a highly beneficial approach to “putting our best foot forward” and avoiding pitfalls regarding your investments. The timeless truth recorded in Proverbs might say it best; “Plans fail for lack of counsel, but with many advisers, they succeed.” 15:22 (NIV).
Knowing that the Master’s IRC is working on your behalf, we hope that you can remain confident during economic and investment market changes. Armed with this confidence, sensational news headlines, blaring market reports, or email solicitations promising all the answers, do not merit your attention! We want you to relax and sleep well at night. It is our pleasure to serve you with all the resources and benefits of our IRC team.
When have you found the truth written in Proverbs 15:22 to be helpful for a situation or decision you were facing? Share those thoughts with us. We always love to hear from you.