Foster Group’s investment management process implements and connects a proven, academically robust, evidence-based portfolio solution to each client’s unique life circumstances and aspirations. In our view, money management must be directed by a wide combination of factors including investor goals, present life-stage, tax exposure, personal responsibilities and preferences, as well as realistic expectations, rather than the simplistic pursuit of an arbitrary rate of return. There is a subtle, but crucial, difference between simply managing other people’s money and managing money for people we know.
History, research, and 25 years of experience working with individual clients have made it clear that possibly the most critical aspect of investor success and, therefore, investment management is managing investor behavior. This includes guiding investors away from costly fear-based mistakes when investment market volatility creates anxiety and worry, as well as helping them avoid the pitfalls of greed when “irrational exuberance” tempts toward taking on undue and unnecessary risk. Most often, the best investment action is relentlessly following a long-term, strategic plan of market participation, remaining allied to broad investment markets in every economic climate.
Each client’s investment portfolio is directed by a personal Investment Policy Statement (IPS) that is selected based on their risk and return goals as well as cash flow requirements, now and in the future. Our portfolio managers and management systems refer semi-monthly to each client’s IPS in evaluating any actions that may need to be taken to maintain the carefully selected risk, return, and liquidity parameters embedded in the document.
Ultimately, investment success is measured by the achievement of various goals including retirement income, education for children, providing for heirs, and causes that matter to you—along with the ongoing experiences of confidence and peace of mind.