Investment Option Selection
Unbundled. Total Open Architecture. Institutional Funds.
Johnston Investment Counsel can select from the “universe” of mutual funds and/or exchange traded funds.
We have no revenue sharing arrangements, so you can be assured that it is our research effort, and not commissions or revenue sharing, that guide our investment option recommendations.
Because Johnston Investment Counsel has the freedom and independence to use lower-cost institutional and/or index funds, we usually provide plan participants with a better-performing and more cost effective menu of investment options. In addition, our approach likely provides a level of fiduciary protection to plan trustees. In selecting a menu of investment options, Johnston Investment Counsel will generally use one of the following approaches:
- Select a diversified menu of high quality / lower-cost investment options. This approach appeals to participants who like to “do it themselves”.
- Create several pre-diversified, “one-stop” portfolios that offer different risk/return characteristics. In one transaction, participants have a high quality, low-cost, diversified investment portfolio. This is the “do it for me approach” that many participants prefer.
- A combination approach in that risk-based portfolios are combined with a diversified menu.
- Johnston Investment Counsel can also serve as investment manager to the account and manage the pre-diversified portfolios using our style rotation approach.