WEBVTT

 

00:00:06.043 --> 00:00:07.057

Hello.

 

00:00:07.129 --> 00:00:09.757

This is Byron Braun,

of Braun Wealth Management Group.

 

00:00:09.829 --> 00:00:15.486

What I'd like to do today is give you a

generic overview of what the Fundamental

 

00:00:15.557 --> 00:00:18.829

Choice Portfolio Management is all about.

 

00:00:18.971 --> 00:00:24.014

Fundamental Choice is an advisory program,

and I have had the pleasure

 

00:00:24.143 --> 00:00:29.414

of being a certified

Fundamental Choice Manager since 2012.

 

00:00:29.486 --> 00:00:34.657

We have the ability, for example,

to hold cash, manage exchange-traded

 

00:00:34.729 --> 00:00:40.743

funds, put in individual stocks,

investment-grade corporate bonds,

 

00:00:40.886 --> 00:00:47.000

certificates of deposit, T-bills,

and a list of allowable mutual funds.

 

00:00:47.900 --> 00:00:53.071

This is specifically for a client

who wants a portion of their portfolio

 

00:00:53.443 --> 00:00:59.314

for the growth component to

their overall portfolio at our firm.

 

00:00:59.826 --> 00:01:06.143

It also lends itself to have

personal service by us allowing us

 

00:01:06.214 --> 00:01:12.514

to manage the portfolio for you and also

provide ongoing performance reports.

 

00:01:12.586 --> 00:01:17.457

In my case, I've chosen not

to have a whole list of all of

 

00:01:17.529 --> 00:01:19.943

these other items that are allowable.

 

00:01:20.014 --> 00:01:23.429

So I've restricted mine to individual

 

00:01:23.500 --> 00:01:28.571

stocks, cash, and exchange-traded funds.

 

00:01:28.643 --> 00:01:32.371

This portfolio also

has self-imposed guardrails.

 

00:01:32.671 --> 00:01:36.471

A lot of times in life, it's

more important of what you do not

 

00:01:36.543 --> 00:01:38.943

do versus than what you do.

 

00:01:39.229 --> 00:01:42.986

I'm sure we've all experienced that

sometime in our lives.

 

00:01:43.057 --> 00:01:47.029

I'm going to highlight some of the

guardrails, and for a complete listing

 

00:01:47.100 --> 00:01:51.900

of those guardrails, you can feel free

to call us, and we'll be more than happy

 

00:01:51.971 --> 00:01:54.714

to share with you the entire list.

 

00:01:54.786 --> 00:01:59.357

But for example, we got to have

at least 10 individual securities.

 

00:01:59.429 --> 00:02:02.429

We usually hold 25 to 30.

 

00:02:02.500 --> 00:02:06.571

Cash is maxed out at 25% of the portfolio.

 

00:02:06.643 --> 00:02:10.043

Stocks that are included

in the portfolio must have one

 

00:02:10.114 --> 00:02:15.900

of our correspondent research firms

rating as a buy or overrate.

 

00:02:15.971 --> 00:02:22.957

For example, some of the things that

we cannot do, we cannot short positions.

 

00:02:23.243 --> 00:02:26.057

We cannot be on margin.

 

00:02:26.129 --> 00:02:29.786

We cannot own leverage exchange

traded funds.

 

00:02:30.643 --> 00:02:33.943

There are no managed future contracts.

 

00:02:34.157 --> 00:02:38.771

We cannot accept any unsolicited purchases

from clients in the program.

 

00:02:39.640 --> 00:02:43.400

Regarding economic sector ownership,

 

00:02:43.471 --> 00:02:46.829

I have attempted to have in there five

 

00:02:46.900 --> 00:02:49.614

of the 11 American sectors in there.

 

00:02:49.686 --> 00:02:53.800

Usually, there's six or seven,

but we have the ability not to have

 

00:02:53.871 --> 00:02:56.329

sectors of the American economy in there.

 

00:02:56.643 --> 00:02:59.971

For example, if you look

at the portfolio today, Utilities

 

00:03:00.100 --> 00:03:02.386

are not a component to it.

 

00:03:02.629 --> 00:03:05.243

We have the ability

to over weight or under weight

 

00:03:05.457 --> 00:03:08.871

individual securities and sectors.

 

00:03:08.943 --> 00:03:12.929

You look at the portfolio

as of September 2024,

 

00:03:13.043 --> 00:03:15.929

we are now over weight financial stocks.

 

00:03:16.000 --> 00:03:21.814

So this is best fitted for the growth

component of your portfolio to complement

 

00:03:21.886 --> 00:03:28.186

a bond component or other strategic

equity styles that we offer at our firm.

 

00:03:28.257 --> 00:03:34.171

An important component

to this is the rebalancing component.

 

00:03:34.243 --> 00:03:36.214

And what is rebalancing?

 

00:03:36.286 --> 00:03:39.514

Rebalancing is the ability, as cash

 

00:03:39.586 --> 00:03:43.357

is added by the client or cash is taken

 

00:03:43.429 --> 00:03:49.114

out by the client, or if we physically

reduce percentages.

 

00:03:49.186 --> 00:03:54.243

For example, you want a $10,000

distribution from your portfolio,

 

00:03:54.314 --> 00:03:58.271

and we had stock A, B,

C, as a 4% allocation.

 

00:03:58.343 --> 00:04:01.843

Theoretically, $400 would come

from that allocation, and the rest

 

00:04:01.914 --> 00:04:05.400

of the portfolio would be rebalanced.

 

00:04:05.471 --> 00:04:10.471

Rebalancing has been

an important component to

 

00:04:10.543 --> 00:04:13.086

professional money management for years.

 

00:04:13.157 --> 00:04:16.957

Along those lines, we have a white

paper, if you'd like to learn more

 

00:04:17.029 --> 00:04:21.614

about rebalancing, which is

a cornerstone of this portfolio.

 

00:04:22.243 --> 00:04:28.329

All income is reinvested, and

it is pro-rated over the entire holdings.

 

00:04:28.400 --> 00:04:34.257

We report to you on an ongoing

basis, either via online, daily.

 

00:04:34.329 --> 00:04:38.571

We provide monthly summaries

for you in paper or online.

 

00:04:38.643 --> 00:04:43.829

We also provide snapshots,

which we call quarterly as well

 

00:04:43.900 --> 00:04:46.243

as semi-annually and annually.

 

00:04:46.314 --> 00:04:50.400

And if we make changes, we take the

 

00:04:50.471 --> 00:04:53.914

liberty of sending you an email where you

 

00:04:53.986 --> 00:04:57.171

can see those edits as as they appear.

 

00:04:57.243 --> 00:05:02.857

These, for example, are flat

based on assets under the portfolio.

 

00:05:02.929 --> 00:05:07.214

So we participate in the fee structure.

 

00:05:07.286 --> 00:05:12.229

If the portfolio has diminished

in value, for example, fees go down

 

00:05:12.300 --> 00:05:14.457

because they're flat percentage.

 

00:05:14.529 --> 00:05:21.171

If assets appreciate, percentage is still

the same, the dollar amounts rise with

 

00:05:21.243 --> 00:05:23.657

the appreciation of the portfolio.

 

00:05:23.729 --> 00:05:28.200

So given your best interest,

we participate either up, down,

 

00:05:28.271 --> 00:05:35.029

or sideways as the portfolio navigates

through different market conditions.

 

00:05:35.100 --> 00:05:40.871

In closing, the fundamental

choice portfolio is a growth component.

 

00:05:40.943 --> 00:05:43.357

It is managed by myself.

 

00:05:43.429 --> 00:05:48.157

I utilize the resources

of all of our correspondent firms.

 

00:05:48.229 --> 00:05:52.086

For example, this is a passion with me.

 

00:05:52.157 --> 00:05:57.329

On a daily basis, I start my day

out at around 5:30 or 6:00.

 

00:05:57.400 --> 00:06:03.014

I then look at the portfolio, see any

updates from our correspondent firms.

 

00:06:03.086 --> 00:06:07.300

I look at Barron's, for example,

to see input from current news,

 

00:06:07.371 --> 00:06:13.343

and I incorporate all of those

on a daily basis with the portfolio.

 

00:06:13.414 --> 00:06:17.429

So this is an actively managed portfolio.

 

00:06:17.500 --> 00:06:23.457

I do put in my own personal input

on the overweights and underweights with

 

00:06:23.529 --> 00:06:28.386

the idea of creating a growth portfolio

for you, our clients.

 

00:06:28.457 --> 00:06:31.714

It also is cost-efficient.

 

00:06:31.786 --> 00:06:36.686

I also will note that most

of us who are bombarded by media,

 

00:06:36.757 --> 00:06:39.886

this is a non-emotional process.

 

00:06:39.957 --> 00:06:45.729

So you are not swayed by

the emotional events of the time.

 

00:06:45.800 --> 00:06:49.500

So hopefully you enjoyed today's video.

 

00:06:49.571 --> 00:06:54.943

I urge you to call us if you want

more specifics as to how it is managed.

 

00:06:55.014 --> 00:07:00.186

We believe it is a strong component

to a complement of other managers

 

00:07:00.257 --> 00:07:05.914

that we can offer you, as well

as fixed, as well as strategic in nature.

 

00:07:05.986 --> 00:07:09.714

At Braun Wealth Management Group, we thank you

for your confidence and trust.

 

00:07:09.786 --> 00:07:13.157

Looking forward to serving

your investment needs in the future.

 

00:07:13.229 --> 00:07:16.629

Thank you for the time

spending with us this afternoon.