If an investor is happy with the performance and volatility of public markets, then owning ETFs or plain-vanilla mutual funds may be acceptable.
But if you aren’t comfortable with the volatility of market indexes and you don’t want to give up performance over the long-term, then you need to think and invest differently.
That’s the approach of the Newport Investment Committee:
- Capital protection first
- Dynamic diversification
- Opportunistic investing
Active Asset Mix Across 11 Different Asset Classes
To protect capital and seize opportunities, our investment universe consists of 11 different asset classes. We actively manage asset mix – meaning the Investment Committee will overweight or underweight certain asset classes depending on the outlook. The old ‘set and forget’ adage does not apply here as opportunistic asset mix decisions add value to client portfolios and enhanced performance.
As one example, in 2009, after real estate values had collapsed in the United States, the Investment Committee recognized a buying opportunity and began investing in apartment buildings located throughout the southeastern U.S. Since that time, this portfolio has generated income and capital appreciation.
Using Alternatives to Enhance Returns
Although known as “alternative” investments, these types of assets are as basic as apartment buildings, seniors’ housing and infrastructure projects like toll roads and bridges.
Diversification away from public markets
Private investments do not trade on an exchange and therefore are not subject to the day-to-day volatility of stocks and bonds.
Private debt, real estate and mortgages are diversified sources of income – so client portfolios are not solely reliant on bonds and stock dividends for income.
Capital appreciation is typically part of the long-term return.
Real estate, as one example, provides good inflation protection.
Alternative investments of this size and quality are typically only available to large, sophisticated or institutional investors.
Independent and Expert Investment Execution
For each of the 11 asset classes, the Newport Investment Committee retains independent specialist managers. This approach ensures not only the right expertise is applied for each asset class, it avoids potential conflict of interest. We take no financial or other benefit from retaining such managers and can change them at any time or reduce/increase the amount we invest with them. The Investment Committee has built a roster of carefully-screened managers, with complementary investment styles, and scrutinizes their activity.