Sustainability

It’s in Our Genes™

Sustainability isn’t just something we practice; it is part of who we are as a company and as global citizens.

With an ownership structure that directs over 40% of our profits to fund medical research, we attract employees motivated to make a difference and develop investment teams who make Environmental, Social, and Governance (ESG) criteria a fundamental part of their analysis.

"We believe we can add alpha for our clients while benefiting humankind.”

Many investors are recognizing the value of investing in strategies that seek to improve our collective world. But some fear this approach can compromise investment outcomes. At Palm Alliance Management, we are committed to delivering investment performance and making a difference. We are proud of our history of helping clients achieve financial success while also impacting society in a positive way.

Diversity and Inclusion

With the most unique ownership structure in the industry, doing good is at the heart of who we are


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$700M+

Supporting medical research*

Corporate Responsibility

Good begets good. We see the work we do driving progress in the medical community, creating a natural drive to give our all to every Corporate Responsibility initiative we pursue.


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7000+

Employee volunteer hours a year*

ESG and Investment Stewardship

Our belief is in genuine ESG integration, making significant, ongoing investments in extensive resources, and in-house training and education.


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>80%

AUM incorporating ESG considerations*

A mix of investments is typically better than one

Asset allocation and diversification can help you strike the right balance between risk and return in your portfolio. Holding a broad range of investments can help lessen the impact that any one economic or market event will have on your portfolio. That’s because different investments gain or lose value at different rates and at different times.

A healthy mix

Asset allocation refers to the different weightings of stocks, bonds and cash in your portfolio. Because these three asset classes have tended to have varying rates of return and risk profiles, asset allocation plays a role in helping you achieve your investment goal.

Diversification takes this process one step further by spreading your money across different investments within the same asset class. Rather than trying to figure out which type of stock or bond will perform best, you’ll invest in many types. Over time, the ups of one investment have the potential to balance out the downs of another, with the goal of reducing the risk level in your portfolio.

Here’s how asset allocation and diversification shape a portfolio

Across asset classes

This portfolio is allocated across the three main asset classes. Your asset allocation will depend on your investment goal, time horizon and risk tolerance.

Within an asset class

While stocks still have the same percentage allocation, this shows how stocks are now diversified across investments that vary by size and geography.

Spread out your money

Asset allocation can have a big impact on your portfolio’s rate of return. In general, stocks are riskier than bonds, though most investors may need both. Your investment goal, risk tolerance and time horizon help determine the best asset class mix for you.

Because the asset classes don’t typically grow at the same rate, you’ll need to periodically rebalance your portfolio. Rebalancing helps maintain your intended asset allocation. Many investment firms offer the option of signing up for automatic rebalancing.


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Fine-tuning your portfolio

It’s hard to diversify by geography, size and industry using individual investments. That’s why so many investors rely on mutual funds. It would take a lot of time and resources to construct a portfolio similar to a mutual fund’s.

A typical stock fund holds 75 to 100+ different investments. And the investment minimum for most bond mutual funds is usually less than what you’d need to purchase a single bond.

Putting diversification to work

While numbers count in diversification, it’s a bit more complicated than that. Here’s what diversification is and isn’t.



FICTION:

If I own a couple of mutual funds and a few stocks, I’m diversified.

Not necessarily. It depends on the funds’ investment strategies and largest holdings. For example, if your portfolio consists of two U.S. large-cap funds and you hold a high percentage of shares in Apple, Amazon and Alphabet, you may not be diversified.

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FICTION:

The main reason I should diversify my portfolio is to improve my returns.

Diversification’s primary role is to lessen the impact of volatility on your portfolio. Instead of experiencing the market’s extreme highs and lows, having many different investments can help to smooth your ride and reduce overall risk in your portfolio.

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FICTION:

I’ve done well investing my "play money" and it’s not diversified. Diversification doesn’t seem that important.

Even if this is money you can afford to lose and you are willing to take bigger risks, your goal is still to make money. Diversification helps to minimize the impact of losing money in a single investment. For investments designated for an important goal, such as college or retirement, consider diversifying by asset class and investment type.

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Palm Alliance Management is where you belong

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