Balanced Strategy


  • BALANCED NET +7.63%

Balanced 2Q21 Factsheet


The Balanced Strategy is actively managed by the Morse Asset Management team and aims to provide long-term growth and income with stability of returns. A strategic asset allocation between equities and bonds is based primarily on client objectives and guidelines. The equity portion of the portfolio provides the growth impetus. The fixed income portion of the portfolio provides a reduction of risk exposure and contributes to a prescribed level of income.


Our investment philosophy is rooted in fundamental and qualitative analysis, experience, and time-tested metrics that are proven over long periods and multiple market cycles. Positive results are the outcome of a well-defined and consistent investment process.

Our equity investment approach adheres to a long-term active growth style. We invest in companies that are characterized by above average growth potential, relative to their industry and competition.

Our fixed income investment approach generally uses investment grade bonds and preferred stocks with strategic shifts dependent on economic and market conditions.


Equity: The primary source of added value is stock selection using fundamental and quantitative research. It is a combination of market sense and bottom-up analysis. Companies must demonstrate growth potential with a reasonable forward valuation. Emphasis is placed on accelerating earnings, revenues and cash flow and industry leadership. Companies should also exhibit superior financial strength (return on equity, leverage and margins) and be led by quality management. Proprietary tools provide an added dimension of discipline to our process, validating forward growth prospects.

Fixed Income: During periods of low or no real interest rate returns, preservation of principal becomes the overriding concern. When these circumstances prevail, we would aim for a short to intermediate maturity schedule. Conversely, during periods of actual or anticipated high real interest rates (greater than 3%), duration of cash-flow returns become the primary concern. Prudence would then dictate a maturity ladder beyond ten years for at least a portion of the portfolio.

Important Notice: Past performance is no guarantee of future results; inherent in an investment is the potential for loss. The performance results of the Balanced Strategy composite prior to November 1, 2013 were attained the Morse Asset Management team at Evercore Wealth Management, LLC (“EWM”). The performance results of the Balanced Strategy composite prior to May 1, 2010 were attained by the Morse Asset Management team at Morse Williams, & Co., Inc. (“MWC”). No other person outside the Morse Asset Management team played a significant part in achieving the performance of the composite during that time. While at EWM and MWC, the investment objectives, policies, and strategies of the Balanced Strategy composite were substantially similar in all material respects to the composite now managed by Morse Asset Management, Inc. (“MAM”), successor to CG Asset Management LLC (“CGAM”). The portfolio manager intends to use the same analytical methods for identifying potential investments for the composite as was used at CGAM, EWM and MWC. The performance results are based upon the returns of all institutional balanced accounts with at least a value of $1 million or more in assets that are managed by the Morse Asset Management team with similar investment objectives, policies and strategies, are reported gross and net of fees (gross returns exclude management fees and are net of transaction costs, net returns reflect the deduction of transaction costs as well as the actual advisory fees) and assume the re-investment of all dividends and capital gains.

For more information on advisory fees, please refer to Part 2A of Form ADV of MAM, which is available upon request. One of the accounts, which represented 1.5% of the assets in this composite, did not pay a management fee until the third quarter of 2005. Some accounts have been invested in the Balanced Strategy since inception. MAM manages its client portfolios according to each client’s specific investment needs and circumstances. The returns of each account participating in the Balanced Strategy will vary due to a variety of form factors, including the timing of trades by MAM, market conditions, cash availability, and timing of client deposits and withdrawals. Therefore, prospective clients should not assume that similar performance results to those shown would have been achieved for their accounts had they been invested in this strategy during the period.

Morse Asset Management, Inc. is registered with the Securities and Exchange Commission under the Investment Advisors Act of 1940. MAM prepared this material for informational purposes only. This material should not be viewed as advice or recommendations with respect to asset allocation or any investment.  MAM obtained this information from multiple sources believed to be reliable as of the date of publication; MAM, however, made no representations as to the accuracy or completeness of such third-party information. MAM has no obligation to update, modify or amend this information or to otherwise notify a reader thereof if any such information becomes outdated, inaccurate, or incomplete. Specific needs of a client must be reviewed and assessed before determining the proper allocation for a client and must be adjusted to market circumstances. Any opinions herein reflect our judgment at this date and are subject to change.  Upon request, we will furnish a list of all securities recommended to clients during the past year. This material does not purport to be a complete description of our investment services. It is not our intention to state or imply in any manner that past results are an indication of future performance.

*The Russell 1000 index (“R1000”) and Barclays Capital Intermediate Government Credit index (“BCIGC”) are the Balanced Strategy ’s benchmarks. The Russell 1000 index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000 index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents over 90% of the US market. The BCIGC measures the performance of the intermediate (1-10 year) government and corporate fixed rate debt issues rated investment grade or higher. The S&P 500 index is a market capitalization weighted index of 500 widely held common stocks. Equity characteristics of the index are included for comparison purposes. The S&P 500 index is not the benchmark of the composite. You cannot invest directly in the indices. Index results assume the reinvestment of all dividends and capital gains. In addition, the accounts’ holdings will differ from the securities that comprise the indices. MAM managed other discretionary accounts (excluded from the composite) that do not reflect the style or meet the criteria of this composite.

**The content of the PSN Database is intended for use by qualified investment professionals. PSN is an investment manager database and is a division of Informa Investment Solutions, Inc. The PSN peer groups were created using the information collected through the PSN investment manager questionnaire and uses only gross of fee returns.