The Investment Advisory Service is designed to satisfy the special needs of physicians and their practices. We always take action with our client’s best interest in mind. Our ongoing experience assisting physicians accomplish their financial goals results in an effective process that our clients find valuable.

Our investment services are provided on a fee only basis. There are no commissions paid as a result of how clients’ assets are invested. This helps eliminate possible conflicts of interest.

Our service follows a process utilizing Asset Class Investing and Modern Portfolio Theory. This allows the Trustees of the retirement plan to disregard unimportant elements and conflicting pieces of information that can keep plan participants from attaining their goals.

Our service provides a disciplined strategy of managing assets that will prevent the retirement plan’s Trustees from potentially making decisions based on emotions. Those types of decisions often generate results that would not be in the best interest of the plan.
Through our Investment Advisory Service, we address the responsibilities of the plan’s fiduciary:
  • To manage the impact of inflation and avoid a consistent loss of purchasing power.
  • To maximize the total rate of return of the investment portfolio while keeping within an acceptable level of risk.
  • To control investment expenses as efficiently as possible.
  • To monitor investment performance and philosophy.

Our firm’s approach to investment consulting, including retirement plans, is through the effective use of investment diversification.

MEDIQUS’ Investment Philosophy is based on a model known as Asset Class Investing. This model is not based on speculation but on the science of capital markets. Decades of research guide the way and while other approaches may tout similar characteristics, we believe there is sufficient evidence and benefits to carve out a more unique and distinct terminology to describe this process.

Asset Class Investing Model

Rather than trying to outguess the market, Asset Class Investing lets it work for you. Markets throughout the world have a history of rewarding investors for the capital they supply. Companies compete with each other for investment capital, and millions of investors compete with each other to find the most attractive returns. This competition quickly drives prices to fair value, ensuring that no investor can expect greater returns without bearing greater risk.

Traditional investment managers strive to beat the market by taking advantage of pricing “mistakes” and attempting to predict the future. Too often, this proves costly and futile. Predictions go awry and managers miss the strong returns that markets provide by holding the wrong stocks at the wrong time. Meanwhile, capital economies thrive – not because markets fail but because they succeed.

The futility of speculation is good news for the investor. It means that prices for public securities are fair and that persistent differences in average portfolio returns are explained by differences in average risk. It is certainly possible to outperform markets, but not without accepting increased risk.

Rejecting costly speculation and guesswork means that investing becomes a matter of identifying the risks that bear compensation and choosing how much of this risk to accept. Financial science identifies the sources of investment returns. To achieve these returns, investors need the tools and experience of their advisor.

Working years ahead of the industry, some firms pioneered what was a new way to invest. An evolution began in the 1970s reflecting a belief in financial science and the efficiency of capital markets. This approach views markets as an ally not an adversary. Rather than trying to take advantage of the ways markets are mistaken, they take advantage of the ways markets are right –the ways they compensate investors. Portfolios should be constructed to capture what the market offers in all its dimensions.

Evidence from practicing investors and academics points to an undeniable conclusion: Returns come from risk. Gain is rarely accomplished without taking a chance, but not all risks carry a reliable reward. Financial science over the last 50 years has brought us to a powerful understanding of the risks that are worth taking and the risks that are not.

Everything we have learned about expected returns in the equity markets can be summarized in three dimensions. The first is that stocks are riskier than bonds and have greater expected returns. Relative performance among stocks is largely driven by the two other dimensions: small/large and value/growth. Many economists believe small cap and value stocks outperform because the market rationally discounts their prices to reflect underlying risk. The lower prices give investors greater upside as compensation for bearing this risk.

Fixed income investments should be used primarily as a strategy to maximize overall portfolio benefit. Shorter-term, high-quality debt instruments tend to have less risk. Lower-risk bond strategies are preferred in order to temper total portfolio volatility or to take more risk in equities, where expected returns are greater.

Trading stocks – especially small cap stocks – is expensive. Most managers are only too willing to pay these costs to meet a forecast or follow an index. The costs they generate are buried in financial statements and corporate ledgers, but the investor always pays in the form of lower returns. Careful trading can reduce or even reverse the costs borne by traditional managers. The savings directly benefits the investor’s return.

Asset Class Investing also focuses on trading. Refusing to forecast or follow indexes gives strength. Where others feel compelled to buy and sell, asset class investing can take its time. It is more important to capture the systematic performance of broad market dimensions rather than the random fluctuations of any single security. It is more important to keep costs low. Asset Class Investing is not satisfied with traditional definitions of returns. By being patient when others are pushing to transact and by being thrifty when others pay a premium, the process works daily to improve results.

Following an Asset Class Investing process maintains a pulse on current developments in the financial and economic markets. This can be accomplished through working relationships or communications with leading financial economists. As a result, we have seen the development of strategies and consulting technologies and have applied best practices to our clients accounts.
Find Out why physicians and hospitals trust MEDIQUS Asset Advisors.conatacus