Philosophy

What you hear from most investment management firms centers around the level of return they hope to achieve. Without a doubt, return is important, but at All Star Financial, our first goal is to help you achieve your goals by effectively managing risk in your portfolio. Our focus on reducing volatility in your portfolio is one of the most important ways we set ourselves apart from the others. We want to find the right investment strategy for you that will achieve your goals while minimizing the up-and-down fluctuations you experience in your overall portfolio.

As All Star President Bob Klefsaas says, “it’s not how much you make – it’s how much you keep!” We follow a process that is designed to reduce risk in your portfolio regardless of where we stand in the economic cycle. It is proven that limiting the impact of down markets is the most efficient way to compound your wealth over time.

The simple fact that we focus on reducing risk gives you a chance to stay on the roller coaster called the market and in the end, take less risk than index funds, yet have more money in your pocket!

Our Process

We are devoted to the success and well being of each and every one of our clients. You can trust that the All Star professionals who work with you will make every effort to understand your personal circumstances and be able to apply recommendations that speak to your own needs and goals.

When you work with us, you will experience our Five Star Process to help determine a personalized solution for your needs:

  • Identifying objectives and risk tolerance: Our in-depth Confidential Fact Finder and specially designed Risk Tolerance Questionnaire will help you tell us more about your needs and your characteristics as an investor. From that, we can recommend an asset allocation model(s) suitable for your goals. Then you and All Star Financial both sign an Investment Policy Statement tailored to achieve your goals.
  • Analysis and Allocation: We apply an asset allocation strategy for you (see “Our Approach to Asset Allocation” below) using no-load mutual funds and exchange-traded funds that have been through our rigorous research process. The goal is to deliver a portfolio of “All Stars” that provides the lowest degree of risk for any given expected return.
  • Implementation: We open an account in your name at either Fidelity or Charles Schwab, and with the limited power of attorney trading authorization, we execute buy and sell decisions on your behalf, saving time and paperwork. We can also help you liquidate or transfer existing accounts to help consolidate your financial picture.
  • Monitoring: Because the world moves quickly, we’re committed to monitoring your individual investments and portfolio on a daily basis. We’ll make tactical changes when they are appropriate (see “Our Approach to Asset Allocation” below).
  • Reporting: You receive trade confirmations, have daily online access to your account and receive monthly and quarterly statements that outline your progress. We also make a point of reviewing your situation with you at least every other quarter to determine if your situation has changed and if any adjustments are needed.

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Our Approach to Asset Allocation

After learning more about you, our process incorporates a comprehensive approach to asset allocation:

  • Strategic Asset Allocation – our primary portfolio strategies are conceived using Modern Portfolio Theory, a Nobel Prize-winning philosophy that helps us identify portfolio strategies designed to generate superior returns over time for an acceptable level of risk. Your portfolio asset allocation is initially structured using this process.
  • Tactical Asset Allocation – using our knowledge of the markets and the economies, we incorporate real world developments into the equation. That means if we feel adjustments to your portfolio will help limit the risk you are subject to and improve your long-term return potential, we will act accordingly. Taking chips off the table is never a bad thing. Our ability to respond to conditions and make suitable changes for your portfolio help improve the prospects for more efficient compounding of your investments over time.

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How We Invest

For most clients, we’ll structure a portfolio with 10 to 20 different investments. Our focus is on choosing the “All Stars” Managers that have an established history of generating consistent, above-average returns but with a focus on keeping fluctuations in their funds below average. Where needed, individual securities are worked into the mix to completely fill out a portfolio. We emphasize identifying investments that offer fundamental value to investors and protect you from overpaying for a particular asset.

Your holdings will include:

  • pure no-load mutual funds
  • Exchange Traded Funds (ETFs)
  • Individual stocks and bonds

To assure that we are delivering on our promises, we at All Star Financial monitor all of our investments by tracking performance daily against relevant benchmarks, talking regularly with our fund managers, assessing how changes in a fund’s structure or management might affect your portfolio and maintaining a disciplined buy and sell approach to all positions in your portfolio.

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