Investment Policy Statement

The Investment Policy Statement’s purpose is to establish a clear framework for managing an investment portfolio in a structured and consistent manner based on your specific needs. An investment policy statement should serve as a blueprint for the investment strategy and management of your assets, helping ensure that the portfolio is aligned with your financial goals, risk tolerance and time horizon, while also providing clear accountability for the investment manager.

Investment Strategies

Bluewater Investment Responsibilities

Bluewater manages your account with the following primary investment objectives:

  • Preservation of principal in alignment with your risk tolerance, establishing stability. Providing an adequate level of liquidity

  • Generating a competitive rate of return

Objectives

Bluewater’s investment selection process aims to balance safety with the right fit for your portfolio, with the goal of ensuring that all choices are well considered and aligned with your long-term financial plan

Selection

Bluewater seeks to maximize the efficiency of your portfolio, aiming to verify that as much of the potential return as possible is retained, all while adhering to your risk tolerance and investment goals.

Performance

Bluewater’s top-down investment approach secures that the portfolio is built with a solid understanding of overarching economic trends, which allows for informed and strategic decisions about asset allocation. This is key to optimizing risk-adjusted returns over time.

Approach

Bluewater will make investment changes and/or recommendations based on the Investment Committee’s forecasts for the US and International economies, with understanding how the investment/asset class should perform in response.

Forecast

Client Communications

Bluewater is committed to keeping you informed of market conditions and any changes in our management of your portfolio. The various communication channels include: 1) face to face meetings; 2) Zoom meetings; 3) conference calls; 4) email correspondence; 5) Client portal.

Client Responsibilities

  • You will be an active participant in defining your investment objectives, liquidity needs, and risk tolerances.

  • You will let Bluewater know of any substantive changes in your life and/or financial condition which would impact your investment objectives, liquidity needs, and risk tolerance.

  • You will take responsibility to read any and all information Bluewater provides you with in conjunction with its management of your investment portfolio.

Investment Strategy Overview

Bluewater understands the importance and significance of being a long-term investor. Being a long-term investor means having a final objective, and a dynamic strategy to achieve it. It means understanding your risk tolerance and return expectations. Perhaps most importantly, it means having the flexibility to make changes as market conditions may dictate.

The decision of allocation to stocks is fundamental to portfolio performance. Bluewater’s strategy hinges on understanding the macroeconomic environment and making the necessary adjustments based on economic growth, the strength of various industries, and the outlook for corporate profits. By aligning asset allocation with economic conditions, Bluewater seeks to maximize return potential while managing risk effectively.

History shows significant, long-term bear markets and economic downturns are usually predicated by a financial system panic of some sort. Not surprisingly, there is a strong correlation between the magnitude of the financial crisis and the depth & breadth of the bear market. Since financial panics are relatively rare, we are ordinarily predisposed to be market or overweight stocks relative to fixed income.

Tax Policy

Bluewater strives to use tax-efficient investment vehicles in all client portfolios. While tax consequences can be an important variable, they do not drive the investment process. The overall goal in your investment portfolio is to maximize the total rate of return of your assets while minimizing the amount of risk you are taking.

Security Selection Guidelines

Long term investment performance is determined by asset performance. Historically, stock assets offer higher rates of return along with greater volatility. Fixed assets generally yield lower rates of return, lower correlation with equities and less risk. Diversification across asset geography and size is recommended based on the client’s risk tolerance.

The individual holdings will consist largely of individual equities, exchange traded funds and mutual funds to fit the portfolio to the client’s risk tolerance, while also aiming for maximum liquidity.

Equities/Stocks

Individual equities will be evaluated using a disciplined approach, dependent on economic outlook. Bluewater will filter for companies that are expected to have both a strong growth rate as well as being bought and sold at a reasonable price.

Equity Exchange Traded Funds and Mutual Funds will be used to gain secure diversified access to sectors and markets while maintaining liquidity in your account.

Fixed Income/Bonds

Bluewater will invest both in fixed income funds, such as exchange traded funds, as well as mutual funds to again gain safe, diverse access to fixed income markets with abundant diversity. Bluewater may also invest in individual fixed income securities based on the client’s individual needs.

Performance Monitoring

Bluewater will compare account performance against a peer group benchmark and/or index where risk tolerance matches that of your account for comparison purposes.

Account Rebalancing

Market conditions may cause certain asset classes and/or securities in your portfolio to deviate from the target weightings. Bluewater will monitor your portfolio and rebalance it to target weightings either systematically based on variance from the target, or upon your direction to ensure the allocation remains consistent with risk tolerance.

Disclaimer

Past performance is not indicative of future returns. The market value of your investments can and will fluctuate. There is no guarantee your investment portfolio will go in market value, and there is no guarantee your portfolio would have performed as illustrated, regardless of investment advisor. Bluewater will exercise both caution and expertise in the investment management of client portfolios but cannot guarantee returns of any kind.

This presentation contains general information that is not suitable for everyone and was prepared for informational purposes only. Nothing contained herein should not be construed as a solicitation to buy or sell any security or as an offer to provide investment advice. Bluewater Wealth Advisors, LLC (“Bluewater”) is a registered investment adviser. For additional information about Bluewater, including its services and fees, send for the firm’s disclosure brochure using the contact information contained herein or visit advisorinfo.sec.gov.

Any reference to a market index is included for illustrative purposes only as it is not possible to directly invest in an index. The figures for each index reflect the reinvestment of dividends, as applicable, but do not reflect the deduction of any fees or expenses, or the deduction of an investment management fee, the incurrence of which would reduce returns. It should not be assumed that your account performance or the volatility of any securities held in your account will correspond directly to any comparative benchmark index.