Our Balanced strategy is primarily designed for individuals seeking capital appreciation with an emphasis on safety and income. Stocks are chosen within the Balanced strategy in a similar manner to the All Cap Equity strategy, but with slightly more weight on high yield dividends. In order to protect capital, Balanced accounts also invest 25%-50% of assets in both corporate and government bonds. We only invest in investment grade bonds which provide above average yields at a given level of risk or rating. Convertible bonds may be owned with below investment grade ratings but do not count towards the fixed income minimum. Click here to learn more about our bond investment strategy. Asset allocation and security selection are based on current market conditions and the income needs of the individual. We seek to provide the desired level of current income solely through dividends and interest such that principal is preserved.
In order to maximize our clients’ tax efficiency, Scholtz & Company offers Balanced investment strategies for both taxable and tax-free (i.e., retirement) accounts. Within our taxable accounts, Scholtz & Company often invests in tax-free bonds (such as municipal bonds), which have lower yields relative to taxable bonds. Conversely, within tax-free retirement accounts, Scholtz & Company invests in higher yielding corporate and government bonds.
To review our historical performance for the aggregate of our Balanced Strategy, please click here.