Introduction
Total Portfolio Management is Nottinghill’s approach to the management of a taxable individual’s or tax-exempt institution’s overall portfolio.  Included are U.S. equities in all capitalization ranges, a meaningful position in emerging markets (international) equities, a fixed income component, and an investment in gold.

Portfolio Structure
Different clients are subject to different sets of circumstances; therefore, Total Portfolio Management encompasses three possible asset allocation structures:  Conservative (50% equities), Baseline (65% equities), and Aggressive (80% equities).  The Baseline structure is the following:

Portfolio Equities – 65% of the Total Portfolio

Large capitalization equities are governed by Nottinghill’s flagship Value Plus strategy, which traditionally has outperformed its large capitalization benchmark.  The indexed positions are invested in low-cost Vanguard mutual funds and/or Exchange-Traded Funds (ETFs).

Portfolio Fixed Income Securities – 30% of the Total Portfolio 

The Select Four Bond Strategy – a Treasury ladder consisting of notes with staggered maturities between two and 10 years, and three actively managed mutual funds.

Portfolio Non-Traditional Assets – 5% of the Total Portfolio

Exchange-Traded Fund shares tracking the price of gold.

The portfolio sectors and the individual securities comprising those sectors have been combined in such a way that the rate of return potential comfortably exceeds the economy’s expected rate of inflation and the knowable level of investment expenses.  And, if history is any guide, this objective will be achieved at a low level of investment return volatility.

Advantages
When evaluating Nottinghill and Total Portfolio Management, consider TPM’s principal Advantages:

The complete answer
TPM covers all of the significant investment bases.  The structure is easy to understand, easy to explain.  One destination for all of the investor’s needs.  One consolidated statement.

Wide diversification
The risk side of the equation also is covered.  Typically, the TPM asset classes and the investments in those asset classes respond differently to different economic/market forces, and the result is a smoother, more consistent pattern of investment returns.

Very low transaction costs and management fees
Turnover rates in all TPM asset classes are relatively low, and that means low transaction costs.  Management fees?  The best news of all.  Index fund fees traditionally are low, and the annual fee for TPM fixed income management is only 0.25% of assets.  Investment expenses have a significant impact upon a portfolio’s long-term rate of return.  They must be kept low.

Very tax-friendly (if applicable)
Value Plus’ gains are almost all long-term, index funds by their very nature are tax-efficient, the gold ETF position is permanent and rebalanced only as needed, and a significant portion of the fixed income sector is entirely passive.  TPM delivers throughout the year, particularly in April.

The complete answer.  Wide diversification.  Very low transaction costs and management fees.  Very tax-friendly.  The case for Total Portfolio Management is a strong one.
 
Contact us and learn more about Total Portfolio Management.