For many people nearing or planning for retirement, the key question is: How do I replace my paycheck? Will my retirement savings be sufficient? How much can I withdraw each month? How many assets do I need to cover the basics? An investor can get some answers to these questions by obtaining quotes on annuities… Read More >
News & Insights
WEPA Receives Capital Infusion
Porter, White & Company acted as financial advisor to WEPA, Inc. in a $2 million capital raise for the Alabama-based technology company. To read more about the deal in the Birmingham Business Journal, click here.
Star Harvest Hopes to Cash in on Sunshine
Goodloe White comments on Alabama’s clean energy market in the Birmingham Business Journal.
How Bond Portfolios Lose Money & Bounce Back
In this commentary, we explore the underlying mechanics of what goes on inside a bond fund and how its price changes over time if interest rates experience a one-time increase. I. Introduction Interest rates are at historic lows, and while at the beginning of 2010 it seemed that interest rates could only go higher, they… Read More >
Creating Equity Portfolios
The white paper, “Creating Equity Portfolios,” poses the question “Why do we recommend certain equity allocations?” The paper reviews the nuts and bolts of diversification and the factors we consider in forming equity portfolios. By considering data and research on different asset classes, including U.S. small cap and value, international equities, emerging market equities and… Read More >
PWCo Completes $20M Bond Financing for SRI
Porter, White & Company completed a $20 million bond financing transaction for Southern Research Institute. For more details, see the article in the Birmingham Business Journal.
Selecting Asset Classes for Portfolios
Research has shown that selection of asset classes is the most important factor in determining the variation in returns of an investment portfolio across time and among portfolios.[1] This paper reviews PW&Co’s approach to selecting asset classes for inclusion in portfolios. I. Defining Asset Classes An asset class is a combination of securities that collectively… Read More >
Exit Strategies: Finding a Way Out
PW&Co comments on best practices for business owners when making a succession plan for their company.
National & Local Upswing in M&A Activity
PW&Co comments on merger and acquisition activity in light of economic conditions.
The Jefferson County Sewer Debacle
Porter, White & Company Chairman Jim White spoke at a symposium sponsored by Samford University’s Cumberland Law Review on Friday, January 29, 2010 entitled The Jefferson County Sewer Debacle. A portion of White’s speech, “Financing Plans for the Jefferson County Sewer System: Issues and Mistakes,” was covered by The Birmingham News in its Sunday, January… Read More >
Interest Rate Expectations
Having experienced a period of falling rates that have positively influenced the return on bonds, many people are worried about the prospects that interest rates will increase. We do not believe that we can profit by predicting interest rates or timing the market. We do think it is important to understand what the market is… Read More >
Investment Expenses
Investment expenses can be a significant drag on investment performance. Some investment expenses are easily identified, and others are hidden from view. Authoritative studies of total investment expenses are scarce. The following table presents estimates developed by William J. Bernstein, an investment adviser and well known author in the field of financial economics (Bernstein, 2001)…. Read More >
Considering TIPS
The government started issuing Treasury Inflation Protected Securities (TIPS) in March, 1997 to offer investors protection from unexpected increases in inflation. Since inception in March, 1997, the Barclays Capital US TIPS Index has returned 6.5% per year versus 6.2% per year for the 5-Year Treasury. The annualized volatility of monthly returns was 6.1% and 4.7%,… Read More >
Investment Management Process
PW&Co uses a four step investment process to understand, analyze, implement and monitor a client’s investments. Our process is continuous and focused on responding to changes in a client’s circumstances, not the inevitable fluctuations in the financial markets. I. Evaluation Adviser reviews client’s goals, objectives, financial condition and tolerance for risk. The review encompasses the… Read More >
Investment Management: What Do We Do?
People often wonder if we don’t pick individual stocks or money managers that can beat the market, what do we do? We believe that there are a number of other things that are more important to managing investment accounts and realizing good performance. Write Investment Policies. Every client of our firm has an investment policy… Read More >
Investment Philosophy
Our investment philosophy is based on a few guiding principles. Risk and Return are Related. Markets are relatively efficient; to achieve higher returns, one must take more risk. Risk as a Focus. Choice of investments should be based on ability to bear risk through good markets and bad, not just on desired return. Spending policy, time… Read More >
Investment Grade Corporate Bonds
Fixed income investments are frequently utilized to reduce risk of the overall portfolio. To reduce risk, the investments selected typically have the highest credit quality (AAA) and shorter duration (<5 years). However, particularly for portfolios where taking large equity risk is not appropriate, exposure to a broader range of investment grade bonds may be desirable… Read More >
M2 Risk Adjusted Return
Investment professionals deal in risk and return, which under modern finance theory are inextricably linked. An interpretational problem arises, however, from the fact that risk and return are usually expressed on different scales: return is expressed in percent per year, and risk is expressed as standard deviation from the mean return. It is desirable to… Read More >