INVESTMENT PHILOSOPHY
At Triune, we believe every investor deserves to know three paramount, essential truths about their investments:
- Portfolio Structure - The intentional combination of stocks, bonds, cash, real estate and other investments within your portfolio. Disciplined portfolio structure enables your investments to behave rationally.
- Personalized, True Performance Data - Actual performance net of all expenses over any trailing time period. This data should be available to you on-demand.
- "All-In" Costs - Commissions, fees, "mark-up" and transaction costs which are a drag on portfolio returns. Minimizing expenses is central to maximizing returns and traditional brokerage firms and banks are adept at masking the true, total costs of your portfolio.
Triune takes immense pride in spending time with our clients to develop customized portfolio solutions which consider your risk preferences, tax situations, and lifetime objectives. We believe capital markets are efficient - but it is only by helping you achieve the three essential truths listed above that we are able to deliver a successful investment experience to our clients.
Triune is privileged to have developed a relationship with a preeminent research partner, Dimensional Fund Advisors. The result is an investment philosophy based not upon speculation but on the science of capital markets. The mission of Dimensional is to deliver the performance of the capital markets and increase returns through state-of-the-art portfolio design and intelligent trading. Dimensional's fund shares are not available directly to individuals, but rather are limited to clients of a select group of fee-based financial advisory firms around the world.
The following paragraphs describe our Investment Philosophy in greater detail:
Triune's Investment philosophy is grounded in the belief that markets are efficient. This does not mean that they behave in predictable patterns nor does it mean that miss-pricings can't occur. It means that it is impossible to consistently predict when these miss-pricings will occur. Logically speaking, we would have to accurately predict when markets will move, in which direction they'll move AND do it consistently over long periods of time, in order to take advantage of any inefficiencies in the market.
Our independent research has led us toward a diversified and passive approach to building client portfolios with a focus on controlling expenses and intentional exposure to asset classes that have historically provided better risk and return tradeoffs. To this extent, many traditional passive investment vehicles exist, including Exchange Traded Funds (ETF's) and Retail Index Funds; however, there are inherent inefficiencies in how most are managed. For example, because a typical index fund seeks to achieve zero tracking error to their benchmark, they are forced to compete with other index funds to sell and buy identical securities at the same time.
Dimensional Fund Advisors is a pioneer in the development of "index" investing going back to the 1970's. Their academically supported research is taught and tested at several of this country's most renowned academic institutions including Chicago's school of Economics and Dartmouth's School of Economics, to name just a few.
