Exhibit 5 lists active investment strategies that CPAs may want to consider in advising their clients or employers. CPAs frequently act as a sounding board for clients and employers about which investments to make. Individual or corporate investment policies, as well as investment goals, should determine how and where funds are invested. The specific and unique aspects of these goals define acceptable performance. Knowledgeable, thoughtful and deliberate investment choices will help fulfill investment goals.
Accountability is king.
Those responsible for managing portfolios must be held accountable for meeting the investor's unique expectations. Active portfolio managers, on the other hand, focus on the fundamentals and are able to jettison overvalued or underperforming stocks during down markets. If index funds sound too good to be true, they just may be.