How your money is managed

Like a disciplined and well executed dance, portfolio development also relies on powerful and exciting fundamentals.  The following 6 steps are the dance movements of our unique investment philosophy.

Step 1: Investment Policy Statement (IPS):
An IPS is a written document spelling out the key components of your financial situation and investment plan.

Step 2: Asset Allocation
Investors who attempt to beat the market by picking and choosing certain stocks or by jumping in or out of the markets nearly always end up under performing the overall market. We believe a better approach is to simply attempt to capture the rate of return that the market offers over time - and the way to do that is extreme-broad global diversification.

Risk and return are related. As an investor, it is important to take only those risks that have been shown over time to reward investors consistently.

Bottom line: We believe that your investment strategy should center around three major decisons. First, how much money you will allocate to stocks versus to bonds, T-bills and cash. Second, how much of your equity capital will you allocate to value stocks versus growth stocks. And third, how much money you will allocate to small-cap stocks versus large-cap stocks.

Step 3: Effective Diversification
Diversification encompasses more than not putting all your eggs in one basket.  We know that stocks sharing similar risk factors tend to move together. To diversify this risk we utilize whole asset classes that do not move in concert with each other.  Thus this increases your likelihood of a more consistent, less volatile net return.

Step 5: Periodic Rebalancing
Your portfolio can drift from its initial asset allocation changing its risk and return characteristics.  We review all portfolios regularly for rebalancing.

Step 6: Markets Are Efficient
Market forces are so competitive that we believe no investor or group of investors can consistently outperform the market as a whole.  Thus at Kathleen Lenover, Inc. we do not buy and sell individual securities.

Loring Ward
For two decades, Loring Ward has provided portfolio management and back-office services to a select group of independent financial advisors and you, our clients. These services include client reporting, portfolio management, operational processing, securities trading, and educational and training support. This allows us more time working with you and less time dealing with operational details.

Loring Ward Video - The Academics of Money Management

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Loring Ward and NPC are separate and unrelated companies.

All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.

Kathleen Lenover, Inc. is a Registered Investment Adviser. Investment Adviser Representatives of Kathleen Lenover, Inc. may transact advisory business in a particular state only if first registered, excluded or exempted from Investment Adviser Representative requirements. In addition, follow-up conversations or meetings with individuals in a particular state that involve either the effecting or attempting to effect transactions in the rendering of personalized investment advice for compensation, will not be made absent compliance with state Investment Adviser Representative registration requirements, or an applicable exemption or exclusion. Securities offered through NATIONAL PLANNING CORP. (NPC), NPC of America in FL & NY, Member FINRA/SIPC. Kathleen Lenover, Inc. and NPC are separate and unrelated companies.

CFP, CERTIFIED FINANCIAL PLANNER and are certification marks owned by the Certified Financial Planner Board of Standards, Inc.
These marks are awarded to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements.

Kathleen Lenover, Inc. all rights reserved, copyright 2011