With active investment management, a portfolio manager actively selects certain investments to be included in a portfolio. Active managers, such as Bloom Investment Counsel, Inc., select investments based on their research and analysis and not simply because the investments are included in an index.
By actively selecting investments based on fundamental analysis and valuation, we are able to choose which stocks and sectors we believe our clients should have exposure to, as well as their respective position sizing, to provide downside protection against market fluctuations through diversification.
Many years of data support that investors are better off with a long-term investment horizon. We at Bloom are focused on the long-term results, and through our in-depth research and analysis, we demonstrate the power of our conviction in all our investment management decisions to help clients meet their long-term financial objectives.
Our clients’ personalized investment portfolios are aligned with their long-term financial needs, objectives and/or legacy goals—we are committed to fulfilling these goals rather than chasing market levels. What we are dedicated to is helping our clients preserve and grow their wealth while providing downside protection as we invest with a long-term outlook.
There may be a place in your investment portfolio for low-cost investment tools such as ETFs. ETFs have enjoyed a spectacular growth in popularity due to their low-cost nature, but like all good things, they also have drawbacks—the most important of which is they have limited to no downside protection when the market drops.
With dividend-paying stocks, you receive two components equaling the total return: the regular dividend payment, and the price appreciation of the underlying stock. This means that even if the share price of the stock decreases, you still receive the dividend.
Investing in dividend-paying stocks is like getting paid to wait for the underlying stock to grow and increase in value, giving you, short-term (income) and long-term (capital gain) rewards.
There may be periods where dividend-paying equities do not perform as well as the rest of the market, but over the longer term, dividend-paying equities have outperformed the broader market.
Dividend payers do set corporate profits aside for dividend payouts instead of reinvesting them in the company, but this does not mean that they are slower growth or any less attractive as investments. A company’s commitment to paying dividends places a higher level of responsibility on management to act prudently on behalf of the investors. They need to achieve growth while maintaining a certain level of financial discipline to make sure that the company produces the required cash flow for dividend distributions.
Bloom looks at each client on an individual basis. This means that each client’s portfolio will be different. There may be similarities between clients’ portfolios but since we do not invest using a model portfolio no two clients’ portfolios will be identical. Using an active investment management approach, we construct a customized portfolio that balances growth and cash flow (if desired), integrating market conditions and security-specific dynamics, to meet our clients’ unique long-term financial needs and objectives.
Our focus is investing in dividend-paying stocks as this provides our clients the opportunity to generate regular income from dividend payments and capital appreciation through increases in the stock price, allowing for a better overall return on investments.