Clients often see the result of portfolio decisions: a trade in an account, a model change, or a shift in allocation. What they do not always see is the research process behind those decisions.
In this ACT Advisors video, Doug English and Wes Johnson discuss the firm’s investment committee process, including how ACT gathers research, evaluates portfolio ideas, and applies decisions across client accounts.
Research is a daily discipline
ACT’s investment process is not built around one headline or one market opinion. Wes explains that the team reviews research from multiple sources, including research made available by LPL Financial, Schwab, and other research providers. Research calls, market commentary, manager updates, and economic analysis help the team track macroeconomic issues, fixed income, model and manager updates, global market themes, and technical analysis.
Outside research is an input, not the decision-maker. That research does not automatically become a portfolio trade. It becomes part of the firm’s broader decision-making process.
Models create consistency across accounts
ACT manages client accounts through investment models that reflect different risk levels, from growth-oriented portfolios to more conservative allocations. When the firm makes a model decision, clients in similar account types and risk levels generally receive the same trade treatment.
That consistency matters. It helps ACT manage portfolios with discipline rather than making one-off decisions without a clear framework.
Taxable accounts require another layer of judgment
Retirement accounts and taxable accounts are not managed exactly the same way. In IRAs and Roth IRAs, trades generally do not create current capital-gain tax consequences. Taxable accounts are different.
Before making certain trades in taxable accounts, ACT reviews potential capital gains and considers whether the trade should be made fully, partially, or differently for a specific account. The goal is not to avoid every tax cost at all times. The goal is to weigh the investment rationale against the tax impact in a thoughtful way.
The committee process matters
ACT’s investment committee meets on an ongoing and as-needed basis to discuss accumulated research, review models, evaluate benchmarks, and think through possible market scenarios. That process helps the team prepare for decisions before market conditions require action.
The firm also hears from outside investment firms and product providers. Most ideas do not make it into portfolios. ACT evaluates them through a practical filter: cost, liquidity, portfolio fit, risk, and whether the idea is reasonably aligned with client interests, rather than driven by product-provider marketing.
This material is for general informational and educational purposes only and is not intended to provide individualized investment, tax, legal, insurance, or financial planning advice. The information should not be construed as a recommendation to buy, sell, or hold any security or to pursue any specific investment strategy. You should consult your financial advisor, tax professional, attorney, or other qualified professional regarding your individual circumstances.
Investing involves risk, including possible loss of principal. There is no assurance that any investment strategy will be successful or that any investment will be profitable. Past performance is not indicative of future results. Any market or economic forecasts are subject to change and may not develop as predicted. Information is believed to be from reliable sources, but ACT Advisors makes no representation as to its completeness or accuracy.
Strategies and portfolio decisions discussed in this material may involve risks and may not be appropriate for all investors. Tax outcomes depend on individual circumstances and may change based on tax law, market conditions, account type, holding period, and other factors. ACT Advisors does not provide tax or legal advice.
