XPYRIA's Investment Tenets
- Understand the Client's Situation
- Establish an Alignment of Interests
- Establish an Appropriate Asset Allocation
- Properly Diversify by Security, Asset Class, and Investment Manager
- Constantly Educate the Client
- Portfolio Rebalancing and Investment Manager Supervision
- Market Timing Does Not Work
- Risk is Always Present
- Only Necessary Risk is Acceptable
- Maximize Value-Added and Minimize Costs
Understand the Client's Situation
At XPYRIA Investment Advisors, we understand that it is vital to develop an open line of communication with our clients. By beginning a relationship with a solid understanding of each client's unique situation, we can develop a plan that is most conducive to investment success. We take ample time to discuss how we do things to ensure that the client understands the motivation for our decision making.
Establishing an Alignment of Interests
Without the appropriate alignment of interests, the process of ensuring investment success will be futile. Everybody involved in the process must be focused on the client's success and must not have a divergent interest for their own success.
Establish an Appropriate Asset Allocation
A clear understanding of a client's unique investment time horizon, risk tolerance, and cash flow requirements are critical elements in determining an appropriate asset allocation structure.
Properly Diversify by Security, Asset Class, and Investment Manager
Once we develop an appropriate asset allocation structure, we believe proper diversification by security, asset class, and investment manager not only reduces volatility, but it may also help enhance returns. From geographic location to security selection, XPYRIA will diligently research the most effective strategy for our clients.
Constantly Educate the Client
The best investment plans often fail not because they are flawed, but because they are misunderstood, distrusted, and therefore willingly abandoned at the worst possible time. We understand that everyone is subject to financial anxiety when volatility increases in the markets; our goal is to provide a solid understanding of the inner-workings of the markets so this anxiety does not result in shortsighted decisions. We believe educating the client will enhance the probability of success with respect to meeting or exceeding financial goals and objectives.
Portfolio Rebalancing and Investment Manager Supervision
The process of rebalancing helps reinforce the buy low sell high mentality that is critical to investment success. Rebalancing and investment management supervision will help enhance return, reduce risk, and improve the probability of success.
Market Timing Does Not Work
Trying to time the purchase or sale of investments in financial markets to correspond to a market top or bottom (a strategy referred to as "Timing") is impossible to do and should not be a part of any long-term investment program.
Risk is Always Present
There is no way to eliminate all risk. Risk is inherent in any investment program and this risk must be appropriately portrayed to the client. If the client is not aware of the risk present in their portfolio, they will be more prone to overreact when their portfolio value fluctuates. Successfully identifying and managing this risk will help improve investment success.
Only Necessary Risk is Acceptable
Taking unnecessary risk endangers the success of a client's investment goals. At XPYRIA, as an experienced financial advisor, we believe that all risk should be justified. We will look at your unique situation to evaluate the appropriate level of risk for your portfolio.
Maximize Value-Added and Minimize Costs
All costs associated with investing present a potential drag on performance. A prudent assessment of costs relative to value-added is paramount to success.