Our goal is to combine our experience and judgement with modern technology tools to help design cost-efficient portfolios that align with your planning and retirement needs.
Our Investment Approach
Noyes Capital Management’s strategy keeps your money working for you no matter what the market or the economy is doing. To do that, we combine Active Allocation with Passive Investments.
With our experience in goal-based investing, our strategy is to build a portfolio that meets your income and inflation protection needs while minimizing risk and overall portfolio volatility. Then:
- Your investments receive hands-on, ongoing and experienced supervision.
- We do not leave your investments on autopilot.
- You will be kept up to date with our client support.
What’s the difference between Active Allocation and Passive Investing?
You may be familiar with Passive Investing. This is the classic “buy and hold” strategy with tax-efficient investments where the advisor simply tries to match market returns. With this method, the hope is that diversification will take care of risk management for you. While this can appear to work very well during long bull markets, there can be significant problems with this approach during bear markets. During down market cycles, stocks typically lose money and fixed income investments may not perform well enough to offset large losses in stocks. It may take several years to recover your losses. We saw that in 2008. While younger people can often afford to wait it out, it can create more immediate problems for those in or approaching retirement.
While a passive approach has several benefits, we believe that we can do better. We include an Active Allocation overlay onto your portfolio. Unlike passive investing, Active Allocation enables our team to reallocate equities to bonds in declining markets and bonds to equities in rising markets.
Here’s how our style of portfolio management can help to benefit you:
- Limit Losses During Bear Markets – Our active strategies are designed to systematically sell securities and reduce market exposure during market declines.
- Tax Efficiency – We prioritize tax-efficient investments as an easy way to increase your return without adding risk.
- Lower Expenses – As your investment manager, Noyes Capital strives to reduce costs associated with fees charged by mutual funds, exchange traded funds or third party money managers. We review performance vs. cost and invest accordingly.
At Noyes Capital Management, our personalized, in-house investment management makes sure your interests, and not the firm’s interests, come first.
Our Investment Process
When you become a client of Noyes Capital, we’ll go through a specific process so we can learn what we need to know to help us do the best job for you.
- Learn about your needs, responsibilities and goals
Many advisors just ask for your age and have you fill out a questionnaire. Then they are ready to invest your money. We do things differently. We believe that to properly design an investment portfolio for you, we need far more information. So we’ll spend more time getting to know about you, your goals, your responsibilities, and your investing preferences if you have them. We also want to understand your expectations for how your portfolio is managed throughout market cycles. You’ll likely have questions for us too, so you can understand and feel comfortable with the process.
- Gather Information
In order to manage risk for you, we need to understand your full financial picture. It is especially important for us to see what other assets you hold, even if we won’t manage them. Often people become dangerously concentrated in certain stocks since they may hold them in their retirement plan mutual funds; then their advisors put them in the same type of mutual funds, unaware of their other holdings. So we work with you to efficiently gather all the information so we know your complete picture. This includes information on your real estate holdings, any life insurance or annuity products, business interests and other assets.
- Develop your investment strategy
We’ll analyze your situation and recommend what we feel is the appropriate investment strategy for you. We’ll take the time to discuss it with you so you can understand and approve of it. Don’t worry, we understand that you’re probably not in the investment business, so we explain it in plain language.
We consider a broad range of investments, but make the selection based on your unique needs, risk tolerance, goals and objectives:
- Stock and bond exchange traded funds (“ETFs”)
- Stock & bond mutual funds
- Individual stocks and bonds
- CDs and U.S. Treasury securities
- Income Equities
Once we agree on the investment plan, our team will implement it on your behalf.
- Continuous Monitoring of your Money
Instead of putting your investments on auto-pilot and just checking on them when you call us, we monitor your investments on a continual basis. Any changes to your investments are made based on targets that we follow. This ensures that your money is managed in a disciplined manner, free of emotional decisions.
- User-Friendly Investment Reporting
We provide daily investment reporting online, monthly custodian reports and quarterly performance reports. That way you can clearly see how well your investments are performing.
Where will my investments be held?
As a Registered Investment Advisor, we do not hold your money. Instead, your money and investments will be held with a Custodian, typically Fidelity Investments. This is beneficial since you will also receive reporting from the Custodian: you have a double layer of security to keep your money safe.
We typically use Fidelity Investments as your Custodian. Fidelity has over $1.5 trillion of assets under administration for over 3,200 advisors and 5.5 million customer accounts*. Fidelity utilizes bank-level security ensuring your money and personal information is kept secure.
*Data as of 2014, per Fidelity website. https://www.fidelity.com/about-fidelity/institutional-investment-management/fidelity-aligns-clearing-and-custody-unit