If objectives are the destination, asset allocation is the route. At Linch Financial, we work with each client to identify the allocation most likely to achieve their investment objectives — a process that requires both an understanding of client-specific issues and a clear read of the economic and market environment.
Above all, allocation reflects a longer-term focus. A disciplined approach seeks consistent, risk-adjusted, after-tax returns over time rather than chasing whatever performed best last quarter. The result is a customized strategy tailored to your specific objectives, not a one-size-fits-all model.
Four Building Blocks
We allocate assets across four major categories based on the expected future performance of each class:
Equities
Equities are the growth component of a portfolio. An equity allocation can span various capitalizations (large and small cap), geographies (domestic and international), and styles (core, growth, and value) — diversification that helps capture opportunity across the market.
Fixed Income
Fixed income is the foundation of a portfolio, providing predictable, steady cash flow with a lower risk of capital loss. For clients focused on preservation, it offers ballast when equity markets turn turbulent.
Alternative Investments
Alternatives offer returns that are potentially less correlated to equity and fixed income markets, with the potential for higher returns — for example, exchange-listed shares of companies undergoing mergers or acquisitions. Adding low-correlation strategies generally reduces the volatility of overall portfolio returns. At times we also use prudent equity and index options strategies for protection from downside risk or to generate additional income.
Cash
Cash allocations are most appropriate for situations demanding high levels of liquidity. These include simple money-market funds and short-term instruments such as municipal securities, U.S. government agency bonds, CDs, and other fixed income securities.
A Customized, Disciplined Solution
From this range of strategies and services, we construct a solution built specifically for you — combining prudent asset allocation, a tax-reducing emphasis, an individualized portfolio, a disciplined approach, and a sector rotation model. The mix evolves as your circumstances and the markets do, but the principle never changes: every allocation decision should serve your objectives, balancing growth and protection in the proportion that fits your life.