Our Mission and Investment Philosophy
Our mission is to create value added, low cost, diversified investment programs to help our clients to achieve their financial goals.
- Low Cost: Our average expense ratio of underlying investments is 0.45% – 0.6%, which is 0.3% – 0.45% below the average similar weighted portfolio expense ratio estimated by Morningstar. Songbird’s portfolio management fee normally ranges from 0.4% to 0.8%, depending upon assets under management, which is below market average of 1% – 1.25%. Since Songbird is a fee-only investment advisor, management fees are our only revenue source since we take no commissions or share fees with service providers, brokers and fund companies. So our interests are fully aligned with our clients.
- Value Added: We strive to deliver value for the management fees we charge to our client accounts. We compare our portfolio performance against benchmark indices with similar allocation to see if our clients’ portfolios have outperformed the benchmark in aggregate. We aim to deliver annualized 1% – 2% relative outperformance net of fees long term. It is a continued effort on our part to ensure value creation through our investment decision making.
- Diversified Investment Programs: Our investment program allocates to broad asset classes: global equities, global fixed income, REITs, natural resources, real assets and hedge funds.
- Financial Goals: The investment programs we create focus on both growth and current income either from coupons or dividend payments. The portfolios have a tilt toward companies that are paying decent dividends but still have good growth prospects. We believe that the long term success of wealth accumulation is through both current income and appreciation over time.