Our Pledge at Lexington
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Actively Strive to Improve Returns
We position clients’ portfolios to increase their overall long term returns. Consider a few portfolio management styles:
- Actively managed
Decades of analysis has borne out that the vast majority of active managers under-perform their benchmarks.
It is no accident that more than 30 percent of institutional investors managing corporate, pension, and
non-profit assets use passive investing.
- Professionally managed
We are nearly alone in the advisory business in charging a flat fee, regardless of the amount of assets
under management.
And these fees really matter: over a 15 year period, starting, for example with $1 million,
your portfolio would be $523,000 larger with us than with a typical active investment advisor
(or $477,000 with a typical passive advisor).
- Self managed
The average individual investor vastly underperforms the market, typically 3.7% per year.
See the Journal of Finance, Vol. LV, No. 2
- Lower Risk
Most portfolios are vastly under-diversified. A portfolio using individual securities would typically have 50 stocks, while a globally diversified Lexington portfolio would have thousands of underlying stocks, across multiple types of stocks, large and small, growth and value, domestic and international. Such broadly constructed portfolio diversity has been shown to lower risk while often increasing returns.
- Simplify Holdings
Most investors acquire stocks, bond and mutual funds haphazardly over the years without ever reviewing them in aggregate. Taking an overall look at your finances likely will lead to a plan that simplifies your financial life as well as lets your portfolio work harder and more intelligently for you.
- Reduce Financial Stress
The gyrations of the stock market are unnerving for even the most seasoned investors. While even globally diversified portfolios are subject to market fluctuations, knowing that your portfolio has been back-tested under varying market conditions including severe recessions should reduce your level of stress.
- Help Educate about Financial Affairs
Successful investing requires a long time horizon. The more knowledgeable and comfortable a client is with his or her investment strategy, the greater the chance they will stay the course with their portfolio through the inevitable market ups and downs. As your long term financial partner, as your time allows, we strongly encourage you to educate yourself on Lexington’s investing approach.
- Help Achieve Financial Goals
By taking the time to understand you unique financial situation and putting together a financial plan, we will think through together what you are trying to achieve and help you realize your most cherished goals.