Many financial advisors view the investments side of their financial planning process as secondary in importance. At Burney Wealth Management, our investment advisors know they are every bit as important as generating the right financial plan. Rather than stick clients in index funds to satisfy their asset allocation, our team of CFA Charterholders works with our CFP® professionals to build out asset allocation strategies that aim to maximize risk-adjusted returns.

Leaning on Burney’s decades of experience running US Equity portfolios, our investment advisors adhere to asset allocation models that combine our Size and Style Responsive US Equity Strategy with funds in the International, Fixed Income and Alternative space that incorporate empirical research to maximize expected returns.


Size and Style Responsive US Equity Strategy

The Size and Style Responsive Strategy (SSR) is a proprietary investment strategy based on the Style Analysis principles of Nobel laureate William Sharpe. He provided convincing evidence that Size – large vs. small market capitalization – and Style – value vs. growth – are the dominant variables in equity portfolio return. This discovery created explosive opportunities for savvy investors.

The chart above depicts rolling three-year return differentials between Small-Cap and Large-Cap stocks since the 1920s. Returns above zero indicate periods where Small-Cap outperforms Large-Cap; returns below indicate the reverse. Over the long run, Small-Cap stocks out-performed Large-Cap stocks. However, this return advantage is not consistent, as Large-Cap stocks periodically enjoy long periods, typically 3-6 years, of superior return.

The chart above depicts rolling 12-month return differentials between Value and Growth stocks since 1979. Returns above zero indicate periods where Value out-performs Growth; returns below indicate the reverse. Over the long-term, Value stocks delivered higher returns; however, cycles typically 18 – 30 months long periodically occur where the reverse is true.

Burney’s SSR strategy strives to capture the opportunities available during both Value and Growth, and Large and Small market phases.

Personalized Portfolios

At Burney wealth, our investment advisors know that many investors cannot invest in cookie-cutter portfolios that do not consider their personal situations. Some have workplace restrictions limiting the companies in which they can invest. Some people want to feel comfortable that their investments reflect their values. Whatever your restrictions are, our highly skilled investment advisors can work with you to build personalized portfolios that satisfy your requirements.

Workplace Restrictions

Our investment advisors have years of experience managing portfolios for clients who work at public accounting firms, consulting firms and other firms with investment restrictions to avoid potential conflicts of interest. We will work closely with you and your firm’s compliance system to design and implement our investment strategies that stay in compliance with your independence requirements.

Environmental, Social and Governance Investing

In today’s day and age, many investors want to feel confident that their investment portfolio lines up with their own personal values. Investment strategies have been developed to incorporate Environmental, Social and Corporate Governance considerations. While the body of research on this style of investing is ongoing, it is attractive for several reasons:

  • Companies that manage social and environmental aspects of their business well tend to be focused towards long-term sustainability
  • Construction of the board and leadership to avoid conflicts of interest and promote diversity directly impact the quality of management
    • Companies that are adept at managing ESG issues often:
    • Quickly adapt to changing environmental and social trends
    • Use resources efficiently
    • Have engaged and productive workers
    • Are at a lower risk of regulatory fines and reputational damage

Our investment advisors build portfolios in accordance with our SSR Strategy that incorporates ESG considerations.

US Equities with Dividends

We generally take a total return approach to investing – that is, we aim to invest in a portfolio of stocks expected to generate higher returns independent of whether the underlying companies pay dividends. We acknowledge, however, that some investors prefer the comfort of dividends and others want their portfolio to produce income. If your preference is to invest in dividend paying companies, we offer our Size and Style Responsive Strategy with an emphasis on dividend paying stocks.

Asset Allocation

Our firm has specialized in building US Equity portfolios since 1974, but our asset allocation models include other asset classes like International Developed Markets, Emerging Markets, REITs, Fixed Income and Alternatives. Crafting and maintaining the right investment strategy based on realistic return expectations is essential in securing your financial future.

Most firms project the past forward to anticipate what will happen next, but blindly following convention is problematic when investment environments change. Our investment advisors adjust our forecast returns based on realistic expectations to accurately align your portfolio with your goals and objectives.

We take special care to include asset classes with low to no correlation to each other in order to maximize risk-adjusted returns. Fixed income is the asset class traditionally used to diversify the risk of investing in stocks, but bonds often see increased correlation with risk assets during times of financial distress and offer lower yields today than they did in the past. We believe an allocation to the right kinds of alternative investments can increase the benefits of diversification.

For more information on how one of our investment advisors can help you or to schedule an appointment, please give us a call at 866-9-BURNEY (866-928-7639).


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