INVESTMENT POLICY
DW Financial Inc. (DWF) attempts to maximize client returns over multiple year time frames for a specified level of risk using no load mutual funds. The agreed upon risk band is discussed and mutually agreed before any client monies are invested. The level of investment risk is described in a letter of agreement as a minimum and maximum percentage of the risk of the Vanguard Total Stock Market Index as calculated by Morningstar software. We benchmark our performance against the Vanguard Total Stock Market Index.
Additional factors used by DWF in the fund selection process include: fund returns over various time periods, client and fund portfolio diversification, market capitalization characteristics of the fund, percentage of fund assets invested in other countries and in various asset classes as well as fund Alpha, Beta, R-Squared, Standard Deviation, Sharp Ratio, Price/Earnings Ratio, Price/Book Ratio, composite earning growth rates, and other factors thought appropriate by DWF including experience of the fund manager and percent of client assets invested in any single fund or fund family.
Client accounts are reviewed at least monthly and changes in account holdings are made whenever, as a result of review, client portfolio risk ratings falls outside of agreed upon parameters or, in the opinion of DWF, funds with superior risk/reward profiles are available. DWF does not engage in market timing.