Robinson Investment Group (RIG) is a Registered Investment Advisor serving individuals, retirement plans, and financial institutions with offices in Brentwood, Tennessee. Its principals currently manage more than $98 million, providing individual investment plans based upon written, client-specific investment objectives. Robinson Investment Group was established in 1996 in Nashville, Tennessee. The firm began as a subsidiary of Nashville Capital Corp. in 1990.
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Our investment philosophy is based on a TOTAL RATE OF RETURN or VALUE concept which gives consideration to income as well as capital appreciation over the longer term.
Implementation of our investment philosophy calls for the identification of risk areas, and of appropriate actions required to protect principal values. This approach emphasizes that economic, business, and stock market cycles cannot be ignored. Continually changing trends in business activity inevitably lead to changing trends in equity and fixed income markets. Simply stated, the stock and bond markets clearly are a reflection of economic activity and do not function independently of one another.
Investment strategy and policy are developed through group interaction in which the individual investment manager tests his interpretations and ideas against fellow professionals.
We manage portfolios, not just stocks and bonds. We utilize a FULLY MANAGED APPROACH which blends a broad list of investments within three general classifications – equity, fixed income, and reserves. Our basic belief is that these three areas of investments should be blended in differing proportions over a cycle in order to accomplish our investment goals. Our investment goals are:
* Protecting Capital
* Preserving Purchasing Power
* Increasing Long-Term Rate of Return
Equity, fixed income, and reserves are stated in percentage ranges to accommodate our approach. Investments within each of these three categories are actively managed in order to produce a higher rate of return to the portfolio. We believe this philosophy will produce the investment results most beneficial to our clients.
CLIENT-SPECIFIC STRATEGIES: It is this client-specific approach that separates Robinson Investment Group from most other investment managers. No single investment strategy can be appropriate for every investor; the resulting “cookie cutter” plan is not likely to meet any investor’s needs exactly. Robinson Investment Group listens to each client’s goals, preferences and concerns, then responds in the most appropriate way consistent with sound financial practice.
INVESTMENT MANAGEMENT SERVICES: Robinson Investment Group is not a broker, but serves as an investment manager through a simple agency agreement authorizing them to make investments on their client’s behalf. This agreement provides clients with separate accounting of all assets and transactions. It also removes any bias that might arise from commission-based fees. All fees are determined solely as a percentage of assets under management.
The fully-managed approach to developing our overall philosophy is reflected in the specifics of equity management. Fundamental decisions on equity policy are made after carefully considering the basic position of the economy, various industries, and individual companies. From this, we develop major projections and determine the desirable level of equity exposure. Equity goals are stated as a percentage range rather than a single figure to provide the flexibility to accomplish investment goals. As policy dictates, cash reserves will be used periodically as an alternative to equities. Such reserves are themselves actively managed to insure that the best short-term investments are being utilized.
Our universe of potential equity investment includes a broad range of industries and companies. Once selections are made based upon fundamental analysis, investments are made in the most attractive security representing equity participation. This would include not only common stocks, but also convertible debentures or convertible preferred stocks.
We attempt to avoid biases which lead to controversies such as the “growth stock-cyclical stock” debate. This acknowledges that over the longer term most stocks are fundamentally attractive at a given time and price.
Another key element of Robinson Investment Group’s equity policy is broad diversification. This is essential to provide balanced participation in stock market recoveries and to minimize exposure to unforeseen events. This type of diversification reduces the geographic, political, and economic risks.
RIG’s Value equity investment philosophy is to seek, in a quantitative manner, high quality companies which possess superior financial characteristics including lower relative price valuations, above average earnings per share growth, and dividend yield. RIG reviews approximately 2,000 companies in its universe. Model portfolios are developed using large capitalization, small capitalization and international stocks. RIG takes a longer term view of investing. With average business cycles lasting approximately three to five years, RIG believes in a buy and hold strategy versus momentum investing. As a result, portfolio turnover will average 40% annually. The average portfolio will usually consist of 40 to 50 names.
The management of fixed-income portfolios incorporates our overall investment philosophy. A substantial part of the total rate of return on an annual basis is represented by the change in principal values. The prime goal of fixed-income management is to reduce the volatility in principal value declines of the portfolio and to capture a portion of principal value increases. This is accomplished by adjusting the reserve and maturity mix as we move through the interest rate cycle.
The function of fixed-income management is far more than merely investing new cash flows at prevailing interest rates. Fixed-income securities are readily marketable and therefore lend themselves to active but prudent management. A continual review of fixed-income portfolios against economic factors which will significantly impact interest rates is essential.
We invest primarily in the quality segment of the fixed-income markets. This provides security against credit risks and produces greater market liquidity. Private placement and “Junk” bond issues are not used.
The turnover rate of portfolios will vary from year to year. This depends upon interest rate trends and the volatility of the market with the accompanying distortions and aberrations between various market sectors. Our turnover rate will generally run between 33% and 100% annually. There is little evidence to support claims that there is a direct correlation between continually higher turnover rates and investment results.
Discretionary authority, although not mandatory, is highly desirable in order to react quickly to market opportunities. We believe this is essential to improve the long-term total rate of return.
Russell L. Robinson,
B.S., University of Alabama
Has worked with investments since 1983. Worked for several leading Financial Institutions including the Tennessee Consolidated Retirement System and Nations Bank.
Principal and CPA
B.S., University of Notre Dame
Has worked with investments since 1968, including 18 years at SunTrust Bank, Nashville where he managed $650 million in employee benefit assets and $100 million in personal trust assets Member of the Finance board of the Catholic Diocese since 1973 Chairman of Investment Committee of the Catholic Diocese since 1995 Member and former Officer/Board Member of the Nashville Society of Financial Analysts
Amy D. Wells
Vice President and Senior Portfolio Manager
B.A., University of Tennessee
Has worked with investments since 1984, including 10 years in Trust Investments with SunTrust, Nashville. Amy is a graduate of Southern Trust School, Board Member of Residential Services, Inc. and Treasurer for the McLeroy Foundation.
Trent C. Green
B.S., David Lipscomb University
Has worked with investments since 1996, including six years with Prudential Securities and three years with Morgan Stanley.
Equity Management Fees
FIRST $5,000,000 1.0% of Assets Under Management
NEXT $5,000,000 0.5% of Assets Under Management
OVER $10,000,000 0.35% of Assets Under Management
Fixed Income Fees
0.50% of Assets Under Management