Strategic vs. Static Investing

There are two paths a person can pursue when managing an investment portfolio: active management or passive management.

Other investment companies in the market state that active portfolio management equals higher costs, and that high expenses are the primary reason why most actively managed mutual funds underperform passively managed funds.  Thus advocating that a passive management strategy, solely based on fund indexing, is the only low-cost way to invest your money.

At Guardian Plus we believe just the opposite. We believe that the new technologies available to our industry allow us to pass the savings forward to your portfolio, allowing you to pay lower management fee such as .25% on our Tier One portfolios.

What you should really be thinking about is, if they are advocating a passive management strategy, then how are they using my money to its fullest potential?


No one wants to think of their money as being dumped into a large bucket to ride out the waves of the market because ‘market returns, are good returns’. But, for example, if your investments are actively managed, short-term tactical investment deviation or adjustments in asset allocation can be swiftly made in order to capitalize on unusual or exceptional investment opportunities.

Owner William McElroy explains, ‘This concept is best exemplified by analyzing the financial market collapse of 2008, and its results on investors.’

If you would have dumped your funds into a bucket of balanced mutual funds, by the end of the year in 2008 you would have lost 27.69%.*

In 2008, Guardian Plus’ strategic asset allocation research moved assets for the short-term away from riskier assets and into safer havens, which resulted in a loss of only 8.6% in returns from all accounts at Guardian Plus, ‘despite the market’s record-breaking decline.’

At Guardian Plus, we are active asset allocators, we believe the question should not just be presented as active versus passive management; it should also include am emphasis on management style.  Our experienced management team employs a strategic and dynamic approach to investment management. A well-rounded and experienced asset allocator knows that investing requires good initial research, patience and a well-diversified portfolio. We strategically evaluate the performance of your investments and dynamically rebalance your assets accordingly.

By definition, active managers rely on analytical research, forecasts, and their own judgment and experience in making investment decisions on what to buy, hold and sell. At Guardian Plus, our portfolio management staff has over 35 years of industry experience using a strategic approach to guide the active management of your investments…

…and we are able to do this at the fee of only 0.25%.

* Morningstar 2008 Fourth Quarter End Review

Guardian Plus Inc. is a registered investment adviser in the State of Washington. The adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transaction in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.