■ We serve investors best by working through experienced investment advisors.

■ We work with advisors to understand each client’s investment goals, and integrate those goals fully into the strategies we recommend.

■ We develop our advice within a completely independent, unbiased framework, and deliver it in a cost-effective manner.

Brookstone’s Investment Philosophy -
Research, Advice, Access

Capital Markets Research

Brookstone provides independent financial advisors with in-depth research into current conditions and developing trends in the global capital markets.

Investment Manager Research

Among thousands of professional money management firms, Brookstone searches for those that offer an optimal blend of corporate strength, investment expertise and performance consistency.  Using a proprietary evaluation method, Brookstone’s experienced research analysts look for firms that demonstrate a high probability of future success. 

Brookstone’s ongoing research process enables the analysts to analyze each firm for investment style drift and ongoing performance.  They are thus able to identify indicators of potential issues quickly, and monitor accordingly.

Investment Advice

Brookstone uses the results of both capital markets and money manager research to generate the investment advice we offer.

The asset allocation recommendation (percent of assets invested in stocks, bonds, cash) that your advisor develops is customized to meet your specific investment requirements, indicating which money managers you should consider for the component parts of your portfolio.

The money manager research helps you and your advisor to identify the most appropriate money management firm for each allocation category.

Style Allocation Fine-Tunes Your Strategy

Style allocation is the decision about how to divide your investments among these alternatives. 

Within the three broad asset categories, there are types of investments with different characteristics, which will gain or lose value on different cycles. For example, in the Equity category, there are two general subdivisions, domestic and international. Each of those is further separated into the following broad asset classes:

Domestic Equity
■ Large-Cap Value Stocks
■ Large-Cap Growth Stocks
■ Small/Mid-Cap Stocks

International Equity
■ Developed Markets (countries like Germany, Japan, the United Kingdom, France)
■ Emerging Markets (countries like Thailand, Turkey, Brazil, Taiwan)

What Style Allocation Contributes to Your Portfolio

Style allocation affects both performance and volatility in your portfolio. We use the results of this research process to help develop a portfolio appropriate for the assets you plan to invest. When we have completed this third step in designing a portfolio for you, we are ready to implement your strategy.

Brookstone’s Analysis & Research Methodology

Brookstone’s analysis methods are strictly proprietary and include charting, technical and cyclical analysis, statistical analysis and mathematical analysis of technical market data.

Our research sources include but are not limited to:

• Morningstar
• Ibbotson
• Lipper
• Ned Davis
• Standard & Poor’s
• Litman/Gregory
• Wall Street Journal
• Barron’s    
• Media General Financial Journal
• Zephyr Style Advisor

Brookstone’s Four-Step Process

Brookstone utilizes a four step process in evaluating underlying holdings and money managers:

Step 1 - Preliminary Criteria:

• Risk-adjusted performance
• Consistent record of success
• Length and verifiability of track record
• Compliance

Step 2 - Quantitative Criteria:

• Predictability of performance relative to benchmark
• Style analysis
• Consistency
• Market cycle analysis
• Total portfolio analysis

Step 3 -Qualitative Analysis:

• Consistency of personnel
• Investment philosophy and process
• Investment research

Step 4 - Ongoing Monitoring Process:

• Personnel change
• Investment process
• Consistency
• Inability to manage growth in assets
• Unexplained poor performance

“Among thousands of professional money management firms, Brookstone searches for those that offer an optimal blend of corporate strength, investment expertise and performance consistency.”