The portfolio management team
meets formally twice a week to
review the economy and its impact
on securities markets and client
portfolios. The team regularly
reviews sector and duration
targets for each fixed income
portfolio and discusses any
adjustments that need to be made.

Equity Indexing

Cavanaugh Capital Management (CCM) invests in a combination of equity index funds and exchange-traded funds (ETFs) as opposed to selecting active equity managers for client portfolios. This passive equity management strategy offers exposure to domestic and international, large-, mid- and small-cap companies. CCM's equity approach combines the advantages of index funds with professional monitoring, consultation, and reporting.

Benefits of Equity Indexing

1. Most mutual funds do not consistently outperform market averages.
2. Indexing is inexpensive.
3. Index funds are generally more tax efficient than managed funds.
4. If one owns the entire market, one will get better than average market performance

Types of equity portfolios include, but are not limited to, the Multi-Asset Class (MAC) Strategy and the Equity-Only Strategy.

Equity-Only Strategy

Clients invested in the Equity-Only Indexing strategy own a combination of indices representing various stock market segments. They include U.S. stocks within large, small and mid-size capitalization; and non-U.S. companies in Europe, Australasia, and the Far East.

The percentage of asset allocation in each index depends on your investment goals. CCM works individually with its clients to determine the best investment strategy to meet their needs.