Types of Clients

 

- individuals - trusts - foundations
- retirement plans - corporations  

 

Types of Services

Click the services below for more information.

 

Asset Allocation

Asset Allocation is the cornerstone of risk management and a key component in preserving wealth. Primary goals are set with clients between equity and fixed income objectives based on the client’s cash withdrawal requirement, the time horizon for the investments, and the client’s tolerance for risk and price volatility. Over time, securities are then purchased to fulfill the target allocation and subsequently rebalanced as needed.

Equity Selection

CRESCENT STERLING, LTD. bases its investment principles on three key elements. The first is equity and sector analysis which utilizes an earnings growth and fundamental valuation analysis. This will determine which stocks or sectors are reasonably or under priced and have favorable potential to make money for our clients over the next 12 to 24 months. Secondly, an emphasis is put on the preservation of capital through the use of selling disciplines when stocks have reached fair or excessive valuation levels and have a good likelihood of declining in value. Third, our investment discipline does not force equity commitments in an extremely over-valued market.

A typical equity portfolio will usually remain 70-90% invested and consist of 15 to 30 stocks. As markets become overvalued, we will take profits and remain in money market instruments until markets become more realistically valued or be reinvested in individual stocks which meet our purchase criteria. During the times when the market is overvalued, we may have as much as much as 50 - 60% in money market funds. This is a key factor in preserving wealth.

The investment approach is based on a "bottom-up" stock selection procedure. Our screening process is based on our in-house valuation techniques, which consider factors such as earnings growth rate, corporate indebtedness, return on equity, market sentiment and technical indicators. Through this process we develop a universe of less than 100 stocks which meet our criteria. This quantitative review process may involve interviewing company management, Wall Street analysts and industry end-users. Upon completion of this investigation, we develop 12 to 18 month price targets for the company's stock. Final stock selections are made for portfolio additions with the client's objectives in mind.

Buying a stock is just part of the investment equation. Selling securities is as critical as buying. We continue to monitor stocks under our supervision to ensure that the securities are maintaining the same criteria which originally allowed us to purchase them. If the company's fundamentals deteriorate, or basic assumptions change, we will sell the stock.

Fixed Income Investing

The primary objective for a fixed income portfolio is to have stable and positive returns. We will add value constructing and managing based upon client needs, objectives and restrictions. We will typically reduce credit risk by investing in U.S. Government obligations, investment grade corporate and tax-free bonds. Interest rate risk is reduced by limiting the duration of our portfolios (7 years or less).

We will utilize several bond dealers when purchasing bonds thus individual security returns can be enhanced by informed purchasing. Total return is enhanced by structuring diversified portfolios based on existing and anticipated yield curves. Our goal is to capture 80-90% of long term bond yields while minimizing the risk of loss of capital during periods of rising interest rates.

Investment Reporting Services

In addition to monthly statements from your broker, Crescent Sterling provides a full range of additional investment reporting.

  1. Summary of investments by asset class, including summary cost basis and summary market value
  2. Listing of individual securities by asset class, including cost basis and market value and
  3. Period performance of the account.
  4. Preliminary Year-end Tax Reporting
  5. Annual Reports and Client Review

Retirement Planning

At Crescent Sterling Ltd, we firmly believe the key to a successful retirement is to set reasonable goals and have a plan for reaching them. We understand that every client is different; therefore, every retirement plan should be different also.  With input from you, our goal is to develop a plan that takes into account your individual situation and tolerance for risk and create an income stream that can be sustained over your lifetime.

Estate Planning

Proper estate planning is essential to passing on wealth from one generation to the next. With the help of your attorney and CPA, we will assist you in determining what legacy you would like to leave behind and how to ensure it is executed according to your wishes.