Aviance concentrates on portfolio selection at the strategic level, through fundamental, market and economic analysis. At the same time, we believe that creative outlooks and a dose of common sense grounded in close observation of the marketplace and business environments provides necessary flexibility to navigate change. Our strategic asset allocation process involves careful research with a bias toward both lowering risk and achieving capital appreciation. This approach is our compass, providing both the discipline and flexibility needed to navigate market changes and volatility.
We are keenly aware that the markets and economy changes, and the industries and sectors we consider in our investment strategies face constant change. Merely focusing on valuation is a poor short-term indicator, and we consider the long-term value in our analysis. Through our experience, Aviance has continually focused upon areas of opportunity through a combination of close observation of market trends, performance expectations, and the fundamentals. Our proprietary research is used to guide our active investment allocations, and provides a level of discipline that strengthens the decisions we make.
Aviance offers investment professionals insight to our investment process and decisions, fostering the building of strong relationships with advisors. This enables advisors to establish good relationships with their clients, who turn to their advisors for guidance to meet their investment objectives.
Risk management is highly significant and relevant to the Aviance investment process. Our core portfolios were built understanding that investors have varying tolerances for risk, and all of our portfolios benefit from our initial and ongoing risk management process. It can be challenging to balance a client’s objectives for growth, income and preservation of capital, and we believe that risk management is an important component to help achieve investment goals.
Portfolios managed by Aviance incorporate securities of varying asset classes, such as fixed income, equities, commodities and alternatives, and from different sectors of their respective markets (large cap, mid cap, investment grade, high yield, real estate, MLPs, etc.). Investing in a diverse basket of asset classes and securities is key in developing portfolios geared toward various risk tolerances, while generating income and attempting to minimalize volatility. Using such a broad universe of potential investments requires oversight to ensure there is an appropriate balance between risk and return.
Aviance manages risk both at the portfolio and individual investment level. We assess the risk that an individual security poses, and how its incorporation into the intended portfolio would impact its overall risk characteristics. This process is our initial screen, and serves to ensure that none of our proposed capital allocations deviate the portfolio from its stated objectives. We also monitor the portfolios at the individual security level on an ongoing basis to make sure that the holdings consistently meet the investment profile of the strategy. These measures are reviewed by Aviance Capital Management, LLC’s Investment Committee, which in addition to this information, reviews economic, market, and fundamental data to determine any necessary changes to asset allocations.