John Marcheso & Associates, Inc, is an independent registered representative affiliated with Centaurus Financial, Inc., an independent broker dealer and member of the NASD. Centaurus is licensed for securities and insurance in most states and is a national firm, and a member of the Securities Investor Protection Corporation (SIPC).

Our company was founded over twenty years ago in North Idaho with the philosophy that clients would benefit most by having access to representatives with high professional and ethical standards whose recommendations are not affected by corporate pressure to offer only "in house" products.

Additionally, we have offices in Vero Beach, Florida to serve clients in that region. We can be contacted at 561-589-9847 or by e-mail

MISSION
Our mission is to help build, protect and preserve the assets and income of our valued clients. People look to us for estate-planning solutions and to manage their business risks. As such, we are dedicated to providing our clients with state-of-the-art, non-biased techniques for:

• Preserving and enhancing the wealth of their estates

• Transferring and protecting business assets

• Discounting business and tax liabilities

• Gifting assets tax-free or tax-deferred

To achieve this end, we use a four-step method for addressing your individual and business concerns:

• Identify your risk

• Research solutions for your particular situation

• Design a plan that best suits your needs 

• Implement and monitor your plan

INVESTMENT PHILOSOPHY
Our Investment Philosophy is predicated on the strategy of four critical components: Asset Allocation, Portfolio Structure specialist, Capital Management, and Continuous Portfolio Management. While each is important, a successful investment program is constructed by integrating all four components. It is generally accepted that to deliver more consistent investment performance, better risk control and a more efficient and cost-effective investment process.

Our investment process relies on strict attention to keeping risk in line with specific benchmarks at the portfolio, strategy and manager level. John Marcheso and Associates, Inc. continuously researches portfolio management strategies to deliver solutions that will best achieve our client's investment objectives.

Asset Allocation is the Primary Factor in Performance Variability Over Time.

Our research indicates that asset allocation (or the distribution of an asset pool among asset classes including stocks, bonds, and cash) is the primary determining factor of performance and its variability over time.

A properly allocated investment portfolio participates across asset classes (eg., domestic equity) and within investment styles (eg., large cap value).
Diversifying a portfolio into international equities actually increases expected returns while reducing overall risk (volatility of returns). This is primarily due to the low correlation between the domestic equity, international developed equity and the emerging capital markets. However, before any strategic asset allocation decision is determined it should be matched to the appropriate contribution stream as well as the Plan's future distributions. This process is referred to as an asset allocation analysis.

This asset allocation modeling approach determines appropriate financial and investment objectives, risk tolerance and time horizon. Modeling simulates the effects of market performance for several scenarios and time periods. This simulation is best conducted using long-term capital market assumptions for asset class risk, return and correlation.

Our research has proven that asset allocation is the first and foremost decision an investor must make. Yet our experience continues to tell us that most investors do not dedicate enough time to this area.

Portfolio Structure is an Integral Component of Asset Allocation.

As demonstrated in the domestic equity asset class, much of the difference in returns can be attributed to the exposures to equity investment styles (i.e. growth or value). The difference in returns between investment styles is similar in magnitude to the year-to-year difference between stocks and bonds. Domestic equity style returns are more volatile than broad market returns due to less diversification and higher industry concentrations. Value and growth styles exhibit unpredictable periods of being in and out of favor, as do large capitalization and small capitalization styles. The difference between the best and worst performing styles can be significant. A domestic equity portfolio, which is over- or under-represented in any of the quadrants representing equity investment styles, is at considerable risk of dramatically under performing the broad market. This type of portfolio is said to be making a style "bet". Diversification of investment styles and broad exposures to all sectors of the domestic equity market eliminates this volatility. A well-constructed portfolio should avoid style bets, in order to lower risk (volatility of returns) and increase expected returns.

Active Specialist Managers
In order to have a high-performing, diversified portfolio structure, an investor must select suitable investment managers. Our research has shown that a majority of managers (60-75%) tend to chase a market benchmark (such as the S&P 500) rather than a management style benchmark (such as the Russell I 000 Growth Index). This occurs because most managers modify their investment styles to reflect the changing leadership in the market, taking on portfolio attributes that are not indicative of their "style". These managers operate where the broad market is (because they are being measured against that market), not where their style discipline dictates. However, by "chasing the market" they create style biases that undermine the portfolio structure and cause portfolio "bets".

Research has shown that the performance of these core managers is not predictable over time (and is unlikely to consistently outperform broad market benchmarks.) On the other hand, our approach involves the implementation of asset allocation and portfolio structure strategies using carefully evaluated style specialist investment managers. By constructing a portfolio comprised of managers who manage to a "style benchmark" (i.e. Russell I 000 Growth Index for large cap growth) an investor gains exposure to the broadest opportunities in the market. This structure also allows the managers to consistently operate within their unique style disciplines rather than attempting to chase or time market movements.

Continuous Portfolio Management is essential for enhanced returns.

By combining the previous steps and continuously managing the portfolio, we believe you can increase return expectations and contain risk. Asset allocation, portfolio structure, and specialty managers add value when the portfolio is actively managed. Therefore, our continuous management effort occurs at three levels: asset allocation, portfolio structure and specialist investment managers.
At the asset allocation level it is important to review the portfolio periodically as business or in or investment objectives change. At the portfolio structure level, style benchmarks tend to shift periodically (for example, the small cap growth benchmark). Consequently, the strategic allocation weightings among styles in a portfolio need to be continuously managed. Without a reallocation mechanism, market results could force unnecessary "bets" on an asset class as well as at the investment style level. Continuous management and rebalancing is necessary to maintain the integrity of the structure and assure optimal performance.

OUR STAFF

John N. Marcheso is a Chartered Life Underwriter, Chartered Financial Consultant and Investment Advisor Representative. John received his MBA degree from Rutgers University. He is a past President of the Coeur d'Alene Estate Planning Council and a member of the Spokane Estate Planning Council, North Idaho Association of Life Underwriters and the National Charitable Giving Foundation. John is a 16-year Million-Dollar Round Table (AADRT) member. For 2000, John has qualified for the Top of the Table of the MDRT. This is the highest honor in the industry that can be attained and less than I% of agents worldwide achieve this status. John enjoys helping people develop and implement plans to meet their financial goals. With over 23 years' experience, he understands the financial challenges most individuals and companies face today and he works diligently to research and provide the right solutions for them. As a financial advisor, John provides financial planning and investment advisory services to his clients.

Beverly Marcheso - Receptionist/Bookkeeper - has been with our agency for seven years. Her previous employment experience was as a bookkeeper. Beverly is a "Gal Friday" and business manager offering excellent support for processing applications, fielding questions from clients regarding their individual accounts. Beverly assists in coordinating and planning business operations including processing claims, updating files, bookkeeping and client assistance with group plans and employee benefits.

Cassidy Gagnier - Executive Assistant - is the newest member to our team. She serves in a support capacity in sales and marketing maintenance of group insurance, employee benefits, long-term disability, 403(b) tasks and retirement planning. She is responsible for coordinating all service related tasks, including the processing of all product applications, maintaining files, data entry, fielding questions from clients and other personnel, as well as setting schedules for completion of work in progress.