Investments

Valley National Financial Advisors Can Create and Manage A Custom Investment Plan That Is Tailored Directly to Your Unique Needs.

At Valley National Financial Advisors, we believe that an investment strategy should be based upon a deep and thorough understanding of a client’s goals and objectives.  We take a long-term approach to portfolio construction and seek to appropriately balance return and risk within a framework that is unique for each client but also repeatable and disciplined.

Investment Philosophy
The portfolio should be designed to meet specific objectives, rather than simply to maximize rates of return.  In our view, the single most important aspect of a sound investment strategy is that it aligns with the investor’s appetite and capacity to take on investment risk.  In a vacuum, a portfolio geared for maximum returns might be desirable, but if the tradeoff between risk and reward is such that long-term spending needs are jeopardized, then it isn’t the appropriate strategy to pursue.  Our focus is on making sure that the investment strategy supports the long-term plan and maximizes the probability of a successful implementation of the plan.

Investment Process
There’s a lot that goes into the construction of a sound investment strategy.  We start by building a properly diversified asset allocation which is designed to balance the competing forces of risk and return.  Each portfolio under our discretion is monitored on a daily basis in order to ensure that the portfolio is properly aligned with its long-term targets.  The portfolio construction process can be broken down into 4 steps:

1. Capital Market Assumptions
   First, we develop expectations for future risk and returns across various asset classes
2. Strategic Asset Allocation
   After deriving our assumptions for risk and return, we use them as a guide for constructing appropriate portfolios that align with a client’s risk tolerance, time horizon, and long-term objectives
3. Security Selection
   Once the strategic asset allocation targets have been determined, we leverage our independence to select best-in-class portfolio managers to fill each sleeve of the portfolio.  We may employ a variety of managers with different styles and approaches to investing.  This may also include a balance of both passive and active investment strategies as we seek to optimize the opportunity for outperformance with other factors such as cost and tax efficiency.
4. Ongoing Monitoring
   As discussed above, each portfolio is monitored on a daily basis, and this process includes the ongoing evaluation of individual investments included within the portfolio.  Because of our independence, we have no incentive to recommend specific investments and are able to remain objective when determining whether an investment should be held or sold.

Strategies
Using the framework described above, we provide a variety of investment solutions for our clients, including but not limited to:

• Individually tailored strategies across the risk spectrum (Preservation to Aggressive)
• Socially Responsible (ESG) Investing
• Thematic Equity Strategies
• Dividend Growth
• Individual Bond Ladders

Investment Committee
VNFA’s investment committee is responsible for conducting the research that serves as the backbone for the firm’s investment strategies.  The committee is comprised of six members who are dedicated to building robust investment solutions for the firm’s clients.  The primary functions of the investment committee include the development and maintenance of the firm’s investment strategies as well as due diligence and analysis of individual fund managers and securities.