At Astra Strategic Wealth, we make investment decisions based on time-tested empirical evidence supported by academic and industry research. Through education and guidance, we empower clients to avoid behavioral mistakes that can be detrimental to achieving financial goals.
- Asset allocation is the primary determinant of a portfolio’s expected return. Risk and return are related. We focus on the composition of the total portfolio in relation to the client’s risk tolerance and the rate of return that is required to fund the goals identified in the client’s plan.
- Global diversification across asset classes, geographies, and risk premiums helps to control portfolio-level risk. While diversification cannot eliminate the risk of market loss, effective diversification does mitigate unique risks incurred by a single company, sector or country.
- Our portfolios are constructed to account for decades of research by leading academics and extensive empirical data. We implement diversified portfolios, not only with regards to the number of holdings but also diversified exposure to risk premiums that have demonstrated the historical tendency to drive returns.
- Tax-sensitive allocations attempt to mitigate the tax consequences of portfolio management through the strategic placement of investments within taxable and tax-deferred accounts. We will continually monitor and review portfolios for tax-loss harvesting opportunities.
Education and Planning
- Education and planning, in other words, implementing and maintaining a thoughtful investment policy based on evidence, transparency and client understanding. An investor’s ability to stay the course through the market’s ebbs and flows is perhaps the most important factor in reaching one’s investment goals.
- Values-based investment options allow clients to adopt investment mandates that emphasize sustainability or avoid companies that conflict with their values.