The RAAM portfolio is a Large Cap Blend strategy that has an emphasis on risk containment. The strategy focuses on a combination of growth and less-volatile relative growth equities designed to mitigate the overall portfolio volatility. While portfolio performance continues to be our primary goal, we seek to control inherent portfolio volatility by altering both the economic sector and individual equity position weightings throughout the stock market cycle. The resulting portfolios are likely to pay a higher level of dividend income than our pure growth portfolios.
Our Capital Appreciation (CapApp) strategy is a Large Cap Growth strategy focusing primarily on the growth characteristics of the companies within our economic and sector themes. The portfolios, nonetheless, are constructed to mitigate risk and experience less volatility than a traditional Large Cap Growth portfolio, while achieving superior results.
Many investors do not feel that they can accept the risk of an all-equity portfolio. The Windward Balanced Growth investment strategy is designed to address this issue by incorporating the added stability of bonds to the RAAM or CapApp equity portfolio. While the size of the bond allocation can be tailored to a client’s individual investment goal, a 30% to 35% allocation to fixed income securities is quite common among our clients.
With an asset allocation beginning with 65% fixed income and only 35% equities, the Balanced Income accounts are among the most conservative that Windward manages. Many clients with a need for high current income (combined with an opportunity to offset inflation) have found these accounts offer the potential income they need, even as they seek to protect their consumer buying power from inflation. Again, the size and characteristics of the fixed income securities used can be tailored to fit the individual client.
