Cardiff Park Advisors recommends no-load, low turnover, passively traded, and low expense-ratio stock and bond index mutual funds for client portfolios (we use the same funds in our own portfolios, too). We particularly like the passively managed index funds offered by Dimensional Fund Advisors (DFA). DFA mutual funds offer broad diversification and are structured for low turnover, reduced trading costs, and reduced capital gains distributions. We also utilize Vanguard Funds, other index funds, and some Exchange Traded Funds (ETFs). Publicly traded Real Estate Investment Trust securities (REITs), gold and commodity mutual funds, or ETFs may be recommended to further diversify asset allocation.
Our client investment portfolios may also include a variety of individual short and intermediate term fixed income securities diversified across different issuers and economies. These include CDs, government bonds, corporate bonds, municipal bonds, and inflation protected securities. For clients with larger fixed income portfolios, a combination of bond funds and individual fixed income securities are often recommended. Fixed income investment recommendations are based on portfolio requirements and the reality of market conditions.
Existing client investments are evaluated as part of our planning and portfolio design process, including developing a plan for repositioning assets into a new portfolio. We’ll offer investment advice on any and all investments held by our clients throughout the advisory relationship. Once a portfolio is built (or rebuilt), Cardiff Park monitors holdings and strategic asset allocation on a continuous basis, providing monthly reviews for all clients.
Cash in Investment accounts are typically swept into the bank or money market mutual fund accounts of the institutions where clients hold their assets (Charles Schwab, TD Ameritrade, or Fidelity). We work with clients to assess upcoming cash flow needs and create a plan for meeting those requirements.