American Research & Management

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MULTI-GENERATIONAL WEALTH MANAGEMENT

We develop sophisticated strategies for transferring family fortunes from one generation to the next – without the threat of dissolution, dire tax consequences or disincentives preventing future generations from being successful.

AR&M has extensive experience in multi-generational wealth management. The firm is well versed in tax and estate planning issues and in-depth knowledge of current statutes and regulations. We develop sophisticated strategies for transferring family fortunes from one generation to the next – without the threat of dissolution, dire tax consequences or disincentives preventing future generations from being successful. We help our clients analyze, understand, and manage the implications and dynamics of various financial structures, including:

Portfolio Management & Investment Strategy

We strive to fully understand each client’s growth requirements, income needs and aversion to risk, and we tailor our investment management activities accordingly. We create a personalized investment strategy for each client to build and maintain wealth within acceptable risk parameters.

Investment Planning

Once a client’s financial objectives have been determined in the financial planning process, we analyze the client’s investment time horizon and risk tolerance. We then develop an individualized investment strategy and customized stock and bond portfolios that balance each client’s growth and income requirements with acceptable risk tolerance levels. We allocate capital to four diversified asset classes: U.S. and international equities, commodity-based investments (“hard asset”), alternative investments, bonds, and cash equivalents.

Equity Strategy

For the equity portion of client portfolios, we tend to favor a balance of growth and value stocks, especially if we can purchase them below intrinsic value. We believe great fortunes are made by owning great companies – the innovators that solve problems, create new markets and improve our world. But success requires rigorous research and the patience to hold through market cycles.

We don’t trade stocks, we buy businesses we want to own for the long-term; our investment selection process reflects this philosophy. AR&M focuses on identifying high quality companies whose financial strength and strategic vision provide maximum potential for long-term capital appreciation. Using traditional fundamental analysis and quantitative metrics, we analyze a company’s business strategy and market position, assess its prospects for revenue and earnings growth and margin expansion, and compare its attributes to others in its industry. We evaluate management’s integrity, vision and long-term track record of success, and we assess how the company will benefit from global macro trends and themes. Our objective is to purchase outstanding businesses when they trade below their intrinsic value – generally when they are out of favor, overlooked or not yet recognized by Wall Street. We plan to hold them for as long as our investment thesis holds true.

Fixed Income Strategy

Depending on each client’s time horizon, risk tolerance, income requirements, and tax situation, we incorporate the appropriate level of fixed income securities to a portfolio to generate income and mitigate market risk and portfolio volatility. We seek high quality bonds from issuers with good credit quality and strong coverage ratios. We diversify holdings by appropriate maturities/durations as well as issuers.

Monitoring & Rebalancing

We carefully monitor each portfolio to ensure that every investment continues to meet our quality and performance standards and remains aligned with the client’s objectives. We will rebalance a portfolio to adjust the asset allocation mix, moderate risk, take advantage of tactical buy-sell opportunities, or manage liquidity for client withdrawal needs.

Tax Efficiency

For taxable accounts, investments are always managed with an eye on tax consequences. Our strategy is to make long-term investments that maximize total after-tax return.

Risk Management

We believe that preserving capital can be as important as growing it. We endeavor to create portfolios with diversification among asset classes and securities that reduce risk and volatility. In addition, our equity election style – buying high quality companies below intrinsic value – provides an underlying margin of safety. Investing in a diversified group of companies with significant tangible assets, high cash flows or strong dividend policies offers further downside protection. We also employ sophisticated strategies to reduce risk for clients with highly concentrated stock positions.