About Us - Our Philosophy

Deckert Leahy, Inc. specializes in fiduciary portfolios, suitable for individual investors and fiduciaries of Trusts and Pension Plans

A fiduciary portfolio is one, which would be considered “Prudent” in the eyes of the law. The guidance that most investment advisors provide is considered “fiduciary” by its nature. The relative nature of what is prudent can differ from client to client. Obviously the 80-year-old investor need not be as aggressive an investor if the assets they own are large enough to support them and they need some income from their portfolio. The more youthful investor who is currently working can use a portfolio with more risk in it, as they are not using the assets to live on. The Restatement (Third) of Trusts (Prudent Investors Rule) in 1992 provides a valuable guide to both consumers and practitioners. Our goal is to design a portfolio, suitable to the individuals needs, goals, and risk tolerances. Once designed and implemented that portfolio must be monitored and managed. Given a moving market environment, assets will swell in value and drop, changing the percentages they hold in a given portfolio. This is turn will change the initial risk levels based on exposure to one assets or another. Further, fundamental change can occur within the asset itself. This too can lead to a change of risk for the client. Finally, investment planning itself is a dynamic process, objectives are changing over time and as income changes, taxes change and, at some point withdrawals begin, portfolios will need to be adjusted. We continue to listen and learn from our clients where they are on their path of change.

OBJECTIVES

We do not believe there is a fixed formula for a certain age person. Every portfolio is designed individually for our clients. We place an INVESTMENT POLICY STATEMENT or IPS with every portfolio we manage. The IPS serves to provide the guidelines within which we must keep the portfolio. Our firm believes that we operate solely at the client’s direction. That is, there are parameters, which must be observed. The client does not “abandon” the portfolio to us to do “whatever” it is we please. We must adhere to the client directions on how we are expected to manage it. Having an IPS in writing allows for all parties to have a clear understanding of what is expected.

MARKET TIMING

While we are buying and selling stocks, bonds, and mutual funds for our client’s daily, we do not practice trying to “time the market”. We have become convinced by our study that a consistent well managed long term investment program will serve our clients better. Studies have shown that if market timers “miss” the market on any number of occasions, the resulting portfolio rate of return will suffer dramatically. The more “misses” the more the portfolio return is degraded. Further, If the methodology used to move the assets were based on a more efficient market model, then others, in seeing this, would flock to that method. Once enough people used it, then it would lose its advantage. This is well expressed by William Sharp, the 1990 Nobel Prize Laureate, in his work, "The Efficient Market Theory."