SCM has earned an unsurpassed reputation for offering our
clients the highest quality of customized asset allocation
strategies. Our valued clients entrust portfolios of equity and
fixed income assets in excess of $2 billion to SCM for
We provide our clients with the tools they need to understand
their individual risk and return profiles and to develop strategic,
long-term asset allocation programs. Assets under SCM supervision
have grown considerably. Our successful investment approach is
based on four fundamental principles:
- Long-term performance is overwhelmingly influenced by
strategic asset allocation.
Studies show that more than 90% of a portfolio's
performance can be attributed to its asset allocation. Our
materials explain financial risk and can help participants
prioritize their financial needs and assess their risk tolerance to
help them develop a successful investment strategy.
- Asset allocation requires an array of investments each
representing one of the major asset classes.
Diversification is more than stocks and bonds - it's knowing how
much to allocate to each asset class, and having an array of asset
classes to provide diversification. We have identified asset
classes that will allow the asset allocation process to effectively
diversify and give exposure to various investment styles and
objectives within the broad categories of stocks, bonds and
- Specialized expertise is required and disciplined
investment objectives must be maintained to manage an asset
It has become increasingly rare to find a successful money manager
who attempts to manage more than one specific investment style.
Rather, top-performing money managers tend to direct their energies
and expertise toward mastering one specific segment of the market.
SCM believes that asset allocation can be best achieved through the
selection of highly accomplished independent investment managers to
manage each asset class.
- Continuous monitoring of each manager is essential to
ensure strict adherence to the investment objectives of each asset
We monitor each manager's performance and investment style for
adherence to the objectives of the assigned asset class and for the
results produced in comparison with the performance of that asset
class as a whole. Since our asset allocation process utilizes
independent portfolio managers, we can be completely objective in
the review and selection of fund managers for each investment
style. We seek superior portfolio management and adherence to our
criteria. When and if warranted, we can replace a fund or managers.
This structure provides a mechanism for us to respond effectively
to investment concerns without undue disruption to your asset
For more information, contact your SCM