Customized portfolios are built using our best investment ideas, relying on in-depth research by our analysts

Principles

• Emphasis on long-term, risk-adjusted total return
• Management and control of risk
• Preservation of capital
• Invest according to fundamental, intrinsic value
• Collaborative team approach for vetting best ideas

Strategy

• Identify attractive secular trends and themes
• Minimize volatility by diversifying portfolios
• Actively pursue inefficiently priced stocks and bonds
• Multi-cap investment style
• Appropriately use cash and fixed income
• Rigorous sell discipline; protect downside
• Selectively use exchange-traded funds and mutual funds

Our comprehensive approach to asset allocation helps generate attractive risk-adjusted returns over the long term while capitalizing on short- to mid-term opportunities by overweighting/underweighting individual securities, industry sectors or geographic regions. Clients benefit from our flexible and objective approach to portfolio construction and global diversification with access to a broad range of investment strategies across a variety of combinations of individual securities, specialized mutual funds and sector ETFs.

Areas of Emphasis

Strategic Asset Allocation

• Long-term, patient, risk-adjusted returns
• Global diversification across risk factors and market exposures

Tactical Asset Allocation

• Short-/medium-term opportunities for overweight/underweight of securities, sectors or regions

Instrument Selection

• Flexible and objective approach to investing in the “best fit” instruments, securities, funds or ETFs

Opportunity Set

Passive Versus Active

• Active where opportunities for alpha exist (net of fees, taxes and risk considerations)
• Passive where conserving fees and trading costs is optimal yet the beta and diversification opportunity fit portfolio

Internal Versus External

• Internally managed strategies ideally suited as core holdings
• External managers, funds or ETFs add exposure to global and/or less liquid asset classes

Risk Management: Total Portfolio View

• Integration of client business/personal assets with regard to market (beta) risks, interest rate risks, sector-specific concentrations and liquidity/cash flow needs

Each strategy typically holds 35-60 stocks complemented by ETFs or niche mutual funds where appropriate

Core Equity

• Growth and preservation of capital by investing in global equity securities
• Large-cap style identifying undervalued quality companies with sustainable growth prospects

Equity Income

• Prioritizes dividend sustainability, growth potential and yield among global equities
• Yield premium to S&P 500 while targeting lower volatility

Sustainable Equities (SE)

• Long-term growth of capital by investing in high quality businesses with sustainable and responsible practices
• Environmental, social and governance (ESG) research combined with traditional equity analysis

Each strategy typically holds high quality individual bonds complemented by specialized mutual funds/ETFs1 as appropriate.

Core Fixed Income

• Preservation and gradual growth of capital focusing on stable, intermediate-term bonds
• Average portfolio credit quality of A; duration target +/- 1 year of benchmark

Core Plus Fixed Income

• Moderate growth of capital and greater income generation by adding higher yielding securities to complement core holdings
• Average portfolio credit quality is investment grade but will have some lower-rated holdings; duration target +/- 1 year of benchmark

Sustainable Bonds (SB)

• Preservation and gradual growth of capital by investing in stable, high quality taxable and/or tax-exempt bonds that also meet ESG criteria
• Environmental, social and governance (ESG) factor research combined with traditional fixed income analysis; duration target +/- 1 year of benchmark

For clients looking for a streamlined approach, we do manage strategies based on global asset allocation executed exclusively with ETFs and mutual funds.

Global Asset Allocation

• Diversified global exposure across 10-15 ETFs covering all major asset classes and sectors
• Managed according to the macroeconomic and sector outlooks of the Cambridge Trust team

Other Mutual Fund/ETF Strategies

• Standard portfolios often appropriate for smaller portfolios or other special circumstances 

Our Sustainable Investing strategy focuses on themes that deliver desired investment outcomes and align with your personal values. By combining environmental, social, and governance (ESG) analysis with our traditional financial due diligence process, we are able to identify best in class opportunities, create a broader perspective on long term earnings viability, and help foster a healthier and just world.

Investible themes include:

• Environmental Stewardship
• Product safety
• Strong labor practices
• Health and well-being
• Social equality
• Economic and community development
• Strong governance 

• Proprietary in-house ESG research process
• Pursuit of positive impact; not just negative screening
• Active management to avoid increased ESG risk
• Consistent evaluation to account for evolving environmental and social risk factors
• Active shareholder engagement to collaborate with companies on strategy, financials, and ESG factors