INVESTMENT MANAGEMENT

D. A. Flowers & Company provides Investment Management services on a fee only basis.  Our fundamental investment philosophy has three tenets:

• Diversification
• Minimize Costs
• Minimize Taxes

In practice, this translates into a low turnover, tax efficient strategy. Fees and trading costs are taken into account when selecting investments.

D. A. Flowers & Company utilizes a Modern Portfolio Theory (MPT) approach to investment management. A diversified portfolio of up to ten different asset classes is combined to maximize returns for each given level of risk. A mean-variance optimization framework is employed taking into account the correlations and covariance of the different asset classes.

Risk preferences are established during the planning process or on a stand alone basis for non-planning clients. Target allocations are established based on the MPT model and the risk preferences agreed to by the client. Investments may consist of individual stocks; active mutual funds; index mutual funds; Exchange Traded funds and individual bonds. The mix of securities will depend on each client's goals, preferences and situation.