(319) 233-1717
100 East Park Ave.
Suite 300
Waterloo, IA 50703
A Division of BerganKDV, Ltd.

Institutional Research and Investment Process

Serious investing calls for well-defined decision processes, consistently applied.

Investment-Oriented Process

Our proprietary investment process allows us to provide our best work consistently to all of our clients. We manage your portfolio to suit your specific risk profile and desired rate of return, personalizing your portfolio to the job you want it to do.

Investment Process flow chart

Creating Your Investment Policy Statement

Your Investment Policy Statement sets the parameters for your portfolio's return goal and benchmark performance. It also identifies risk parameters, describes short- and long-term cash flow needs and includes details on all investment criteria.

Portfolio Liquidity

We select high-investment-grade assets such as insured CDs or escrowed munis designed to mature and repay principal on a schedule aligned with your expected distributions. It can be very comforting to see, right there on your statement, where cash flows would come from to meet your needs. This approach can help to reduce risk compared to other approaches that involve selling shares to get money.


We consider how investing in bonds may contribute to liquidity and your future wealth as we structure your portfolio. We view bonds as a series of cash flows, both coupons and redemption proceeds. We then design your bond strategy to manage cash flows for realized compound total return to maturity and greater future wealth over periods of three to five years.

Global Equities

We seek investment opportunities worldwide, because different geographic segments may be growing at different rates. Our global equity process determines how much to invest in different parts of the world after considering a number of criteria including: a) geographic composition of broad market indices; b) economic projections for different regions of the world; c) geographic segmentation of revenues for the companies in our Core Equity model portfolio; d) analysis of observed volatility of investable index funds in each segment over at least one full market cycle.

Core Equity Model Portfolio

We select individual stocks based on fundamental criteria. We analyze financial ratios for liquidity and solvency, profit margins, investor returns, price/value relationships, and cash flow. We look for "staying power," in short, companies that are in a favorable position to return cash to investors by repaying debt, increasing dividends or buying back stock.

Next, we establish sector weights for every major economic category in the S&P 500, then we look for companies with superior staying power selling at attractive valuations in every sector.

Our disciplined sell process includes five different tests:

  1. Transition Stock is involved in a buyout or merger
  2. Valuation Stock price is so high that we see little upside potential remaining
  3. Fundamental Drift Company trends away from our selection criteria
  4. Rebalance A position grows significantly above its target level
  5. "The Challenger" A better security is identified for this sector. This test helps to ensure that the stocks we hold at any time represent our very best ideas.

Ongoing Monitoring

We actively conduct ongoing analysis of the financial markets and apply our findings to our ongoing investment analysis to keep your portfolio up-to-date. We also conduct regular conversations with you make sure that your Investment Policy Statement continues to define the guidelines for your portfolio.