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Balanced Portfolio

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Balanced Portfolio 


Philosophy

Congress Asset Management strives for superior total returns and a high degree of preservation of capital and consistent income through a growth-oriented, diversified portfolio of high quality securities. Consistency of approach and adherence to sound fundamental analysis is the basis of our conservative investment process.

Investment Process

The Investment Policy Committee (IPC) is the central-decision making body responsible for all investment decisions including asset allocation and security selection. The IPC consists of all investment professionals of the firm and meets weekly. Asset allocation is determined based upon attractiveness of the stock and bond markets and the outlook for inflation, economic growth and corporate earnings. The fundamental process utilizes a bottom-up, growth style approach to stock selection with a focus on high quality companies. Intermediate, high credit quality bonds are utilized for cash flow and stability.


Sell Discipline

Securities are sold when:

Fundamental deterioration of the security takes place and/or four or more quarters of disappointing financial results relative to time of purchase.

Comparative analysis: a new security is judged significantly more attractive while maintaining portfolio diversification.

Significant over-achievement which results in the stock becoming too dominant (reduction vs. outright sale).


Structure

IPC current allocation: 70% equities, 30% bonds. The process results in 35 to 45 equity securities per portfolio. Equity industry exposure not to exceed 15% and no more than 5% in any one stock. Bonds have a weighted average quality of AA and maturities in the intermediate range. Fully invested with a cash allocation not in excess of 5%.