The Rothschild Portfolio Management Process
Rothschild Investment Corporation’s professionals work closely with each client to create an individualized investment strategy emphasizing risk-adjusted returns.
Once the investment plan is established, Rothschild advisors determine a well-suited asset allocation and select an appropriate mix of investments. Depending on each client’s particular investment needs, the structure of each portfolio can range from a very conservative income-oriented portfolio to a portfolio comprised of growth-oriented equities.
After the portfolio is assembled, Rothschild continually evaluates market conditions, the relative values of each client’s holdings, and whether market changes have made other asset classes or investments more attractive than those currently held.
Further, Rothschild remains in contact with clients, providing quarterly portfolio appraisals and annual tax reporting (for taxable accounts).
Security Selection
Rothschild applies a prudent, yet flexible, approach to security selection.
Prudence is seen in the common belief that portfolios do best when composed of a select number of well-monitored, diverse and high quality securities most likely to benefit from larger macroeconomic trends.
Investment flexibility is demonstrated in the fact that Rothschild is continually looking for new and attractive investment opportunities.
This prudent yet flexible philosophy is seen in the ongoing review of stock and bond research from numerous providers, meetings with executive management and the firm’s weekly investment management meetings. During these weekly meetings, Rothschild advisors share investment ideas.
Equity Portfolios
Rothschild invests in generally higher quality, predominately large- and mid-cap stocks selected through fundamental analysis. We evaluate each current and potential core holding based on criteria such as historical performance, relative price/earnings ratio and future earnings potential, relevant macro and microeconomic trends and reviews of regulatory filings.
By applying this process, Rothschild attempts to identify companies with strong upside potential over the long-term, thus limiting tax costs (for taxable accounts) and expenses associated with frequent portfolio turnover.
Bond Portfolios
Rothschild believes fixed-income investments should limit, not add to, the risk in our clients’ portfolios. With asset protection the top priority for bond investing, we construct fixed income portfolios comprised of primarily investment-grade bonds — “laddered” from short-term to intermediate maturities — to protect against interest rate risk and credit risk.
For more information, contact Bradley C. Drake; (312) 983-8956
311 South Wacker Drive, Suite 6500 Chicago, IL 60606-6694 Phone (312) 983-8900 Fax (312) 983-8968