NGA's investment philosophy is built around the following three key tenets:
- To first understand a client's objectives and capacity for risk. We then seek to effectively manage the first level of the risk/return equation through proper asset allocation.
- To build logically diversified portfolios using a global opportunity set of publicly traded securities that are vetted and then thoughtfully assembled using a fundamental valuation discipline.
- To administer portfolios with a view toward long term absolute returns and principal stability, with an on-going awareness of and sensitivity to the ever changing dynamics of global economies, capital markets, and clients’ personal circumstances.
NGA's core equity philosophy is focused on a security’s valuation: relative to peers, to the overall market, and to its historical metrics. The key company characteristics used in the initial screening process include high and consistent return on equity, low levels of debt, low relative valuation, and a history of sharing profitability with equity holders through consistent and growing cash dividends. This is first accomplished with quantitative screens that allow for identification of a more manageable grouping of stocks that can then be analyzed more fundamentally. Once identified for inclusion in the portfolios, a diverse (by sector, geography, and capitalization) grouping of publicly traded businesses are then assembled on an account-by-account basis and actively monitored for progress. NGA’s conviction is that value oriented investment disciplines have historically provided the highest risk adjusted returns.
NGA’s core fixed income philosophy is centered around reducing overall portfolio volatility and providing for principal stability and high current yields. Relative valuation plays an integral component as NGA portfolio managers seek to exploit inefficiencies adding yield that is frequently over looked by institutional managers. We typically will not take excessive duration, maturity, or credit risk in fixed income positions recognizing the superior results normally available from equities for similar levels of risk. Fixed income segments will be diversified among treasury and government agency debt, corporate and municipal bonds, and supplemented by select exchange-traded and closed-end funds. Hybrid and securitized debt securities are also utilized as yield enhancers.