As a fiduciary to our clients, Nachman Norwood & Parrott is committed to providing unbiased, independent investment advice that is in our clients’ best interest. One of the ways we serve our clients in this capacity is through our Investment Committee.
The Investment Committee is guided by several sound investment principals:
- Each investment should have an identifiable role in the overall success of your portfolio.
- Risk has many forms, but the most important risk is a failure to meet long-term goals.
- The math of financial loss is unfavorable. A 20% loss requires a subsequent 25% gain to break even. Focus on risk first and then work to optimize the performance for that amount of risk.
- Compound interest has often been referred to as the Eighth Wonder of the World. Participate by staying invested.
Pursuant to these principals, the committee meets regularly to construct, implement and monitor firmwide investment strategies designed to help our clients meet their financial goals. With over $1.7 billion in assets under management, NNP and its Investment Committee have access to research partners and sophisticated software, which we utilize to continuously improve our investment selections, strategy allocations and implementation processes.
In addition to structuring each strategy’s allocation, the Investment Committee selects and routinely evaluates the individual securities that make up our portfolios. Each holding is regularly reviewed and assigned a score based on numerous criteria. Scores function as peer percentile ranking based on investment criteria as reflected by prudent fiduciary management. Some criteria of the scores are easy to understand, such as manager tenure, fund flows, organizational stability and internal expenses; others, like risk-adjusted returns, alpha, beta, Sharpe ratios and standard deviation, may be harder to comprehend. While we consider analysis from independent agencies such as Morningstar, we also have access to many of the actual fund managers themselves.
Acting in the best interest of our clients also means implementing recommended portfolio changes as efficiently as possible. We have invested in technology and partner with a custodian to help ensure the best execution for our clients.
We are committed to using our people, resources and processes to fulfill our role as a fiduciary. Our Investment Committee is another example of how we are always working in the best interest of our clients.