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CITYWIRE FEATURE “A PORTFOLIO FOR RIDING OUT THE STORM”

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2020 Investing Principles National & Regional Press May 18, 2020

What is the philosophy behind this portfolio?

We believe that a strategic asset allocation model that is regularly rebalanced and geared for capital growth with supplemental investment income, providing a meaningful component to total return, will provide a client solid, long-term risk-adjusted returns. In this case, our aim is for the aggregate portfolio risk to efficiently align with a client’s conservative growth investment objective. We prioritize high-quality security selection, and expect that design to contribute to delivering consistent returns for wealth accumulation at a rate beyond inflation, taxation and fees.

What types of clients use this portfolio?

This ‘Conservative Growth’ model is typically deployed in $500,000+ IRAs for clients within a 10- to 15-year window on either side of retirement and a fully vetted conservative growth investment objective.

How is this portfolio built to weather a downturn like the present moment?

 To mitigate the consequences of an extremely negative economic outcome, we are holding more cash than usual. That 4% cash position serves as a form of temporary portfolio insurance in the event investment income does diminish, as well as a source of funds to recalibrate the portfolio allocation as needed once the Covid-19 crisis peaks and we are able to reasonably assess portfolio impairment.

That said, we feel the portfolio is built for all-weather environments given its focus on quality and total return, as investment income provides a portfolio yield of approximately 2.25%, as of early April. 

In terms of other recent changes, we significantly reduced small-cap, energy and financial stock exposure in late December 2019 and late February. As a result, we feel the equity component is positioned on higher ground. 

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brenden ellis

Brenden Ellis is a Wealth Advisor at StrongBox Wealth, where he works with individuals, families, and business owners to make thoughtful financial decisions with clarity and confidence. His work centers on retirement planning, tax-aware investment strategy, and long-term wealth planning, helping clients align their financial resources with their personal and professional goals.

A native of Lee’s Summit, Missouri, Brenden began his career in 2021 in Commerce Bank’s commercial lending training program. He later became a Healthcare Relationship Manager in Kansas City, specializing in physician practices. Through that role, he gained deep experience in physician equity structures, practice financing, and real estate lending. Working closely with medical professionals shaped his understanding of the complex financial lives of high-earning specialists and ultimately led him to transition into private wealth advising.

Brenden earned his Bachelor of Science in Finance from Iowa State University. He currently serves on the Board of Directors for Saint Luke’s East Hospital and lives in Prairie Village, Kansas with his wife, Nicole, and their dog, Theo.

Outside of work, Brenden enjoys racing triathlons and other endurance events, along with cheering on the Kansas City Chiefs and Iowa State Cyclones.

Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.