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Hancock Investment Advisors utilizes total return as the
foundation for our investment management decisions. We recognize that a
fundamental, math-based decision making process is critical to making
the best risk versus reward decisions.
Hancock Investment Advisors evaluates the performance of an
investment portfolio over three different time frames and seven
different interest rate scenarios. We calculate a portfolio’s income
potential in conjunction with its market value change to determine the
portfolio's true return. Calculating multiple potential outcomes for an
investment portfolio allows us to optimize the portfolio’s return
while maintaining an acceptable level of risk. Hancock Investment Advisors employs the same total return approach when evaluating individual securities for purchase or sale. Comparing investment options with various yields, maturities and cashflows is confusing without the benefit of calculating the security’s total return. Only through the understanding of a security’s risks will we be able to evaluate whether a return is acceptable. Our math-based approach takes assumptions about interest rates out of the equation and focuses on risk versus reward. |
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Copyright © 2005 Hancock Investment Advisors. All
Rights Reserved. |
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