Investment Management
At Thun, our investment strategy is predicated on what we call the Four Pillars of Long-term Investment Success:
- Diversified asset allocation
- Strategic rebalancing
- Low expense ratios
- Prudent tax management
As a result, we apply a passive investment approach that employs low cost, tax efficient index funds diversified across multiple asset classes. Portfolios are periodically rebalanced to maintain proper diversification and to take advantage of cyclical swings in relative asset valuations.
Our approach puts us at odds with the traditional brokerage industry. Brokers and fund managers focus almost exclusively on convincing investors that their fund recommendations or stock selections will do better than the broad market averages. In reality, decades of research and the experience of millions shows that virtually all fund managers underperform the market averages over the long run. Even the best fund managers almost always fail to make up for the impact of high management fees, transaction costs and taxes. The resulting poor long-run performance is compounded by the widespread failure of brokers and fund managers to ensure that their client's holdings are sufficiently diversified.
At Thun, we do not manage mutual funds and we do not take brokerage or sales commissions. As a result, our only incentive is to help keep your money invested wisely, while diverting as little as possible into hands of brokers, fund managers and Uncle Sam.