Equities

• Large Cap Domestic Equities…Core Satellite investment philosophy will be used for the investments in this asset class. Exchange Traded Funds (ETF’s) or large cap index linked securities will make up the core part of this asset class. Also, individual large-cap equities may be used within any of the market sectors.
• Mid-Cap Domestic Equities…Broadly diversified Exchange Traded Funds as well as actively managed mutual funds will make up the investments in this asset class. Individual stocks will generally not be used in this asset class. While not strictly prohibited, it will be a rarity to see individual stocks used in this asset class.
• Small-Cap Domestic Equities…Broad based Exchange Traded Funds as well as actively managed mutual funds will be used within this asset class. Because of the small size of this asset class and the volatility of small-cap equities, individual securities will be a rarity in this asset class.
• Developed International Equities… This asset class will use broad based Exchange Traded Funds as well as actively managed mutual funds. While not prohibited, individual stock positions will be a rarity in this asset class.
• Emerging Markets Equities…This asset class will use broad based Exchange Traded Funds and actively managed mutual funds.
• Commodities (Alternative Investments)…Because of the volatility of commodities and the small allocation to this class, proper diversification will generally be achieved with Exchange Traded Notes that track various commodity indexes. For qualified clients, our Managed Futures Fund will be utilized as part of the overall allocation.
• Real Estate… While individual real estate stock holdings are not prohibited, the small size of this asset class will generally demand that broad based investments (Exchange Traded Funds and actively managed mutual funds) will be used to achieve proper diversification. Investments with exposure to international real estate may also be used.

Fixed Income

Bonds are not fairly traded items since bond brokers do not have to disclose their markup. Brokerage firms have two levels of fees, the broker’s commission and the mark-up for the firm’s bond desk. Brokers only have some degree of pricing flexibility as it relates to their specific portion of the overall markup. Furthermore, brokers sell bonds from their firm’s inventory. Thus, even if they can get clients a better price in the open market, brokers will often sell bonds from their inventory because they can make more on markups. Windsor’s goal is that you receive the best possible trade execution and portfolio construction. The fact that Windsor utilizes the PrimeBroker network you can be assured you are truly receiving institutional pricing.  A better price on a bond means a better yield for our client.

• Credit Quality: Individual fixed income positions will be investment grade quality or higher.
• Active Management: Based on interest rate outlook, call protection, and credit research.
• Duration: Decided by economic outlook and client needs.
• Excess Funds: May be temporarily invested in investment grade short-term fixed income or money market instruments.
• Any allocation to international or high yield fixed income investments will be determined by a client’s risk tolerance. These investments will be made through actively managed funds or Exchanged Traded Funds.