Vector Money Management

Our Investment Philosophy

Vector uses a top down approach to the financial markets that begins with an economic model focused on the outlook for inflation and interest rates.  The model has proven very prescient in maturity decisions for bond portfolios and has also been very useful in sector selection on the equity side.

EQUITY: 

While we do invest in stocks that are considered value stocks, Vector is more focused on growth and appreciation in its equity style.  A key premise in our equity approach is the statement:  “Superior investment opportunities are usually the result of change.”  Some of the agents of change we focus on are demographics, lifestyles, technology and government policies.

FIXED INCOME: 

The biggest threat to a bond portfolio is inflation eroding its purchasing power.  Our economic model is key in providing the inflation outlook that drives the duration decisions on our fixed income portfolios.  We use the full spectrum of fixed income securities from Government Bonds to Treasury Inflation Protected Securities (TIPS) to Corporate and Convertible Bonds.   

BALANCED:

By using our equity approach in conjunction with convertible securities and straight debt, we seek to bring superior value to our clients. Each portfolio's amount of debt is determined by the income needs and risk profile of the specific client. If no specific income is required, the asset allocation is determined by evaluating the risk and reward of the different asset classes. Convertible securities are used whenever possible to reduce risk and volatility.