We utilize a comprehensive approach to building and managing investment portfolios for individuals. The process includes:
Profiling — We spend time getting to know our clients so we can better assess their unique needs and objectives. This may include helping clients better understand their near and long-term spending needs, liquidity needs, tax situation, and investment time horizon.
Risk Assessment — Instead of relying only on risk tolerance questionnaires that many investment managers use, we augment these through conversations with the client to determine an appropriate risk level. We believe our Portfolio Managers have developed the ability to determine risk tolerance levels, often educating clients in order to make the most informed decision.
Asset Allocation — We consider a number of factors when determining a client's asset allocation, including the client's unique circumstances, modern portfolio theory, and our outlook for the capital markets. Rather than relying solely on software for our asset allocation recommendations, our team has the discretion to choose a customized asset allocation for each client.
Investment Guidelines — Development and review of Investment Policy Statement (IPS) for each client. The IPS includes the agreed upon ranges for each investment class, investment objective, liquidity guidelines, tax bracket, and long-term goal of the account. An IPS is signed by each client.
Portfolio Construction — Once the asset allocation goals are established for each account and an IPS has been developed, the portfolio manager discusses the various investments that we use for each asset class. The use of the various investment vehicles is based on the investment objective, client understanding, and size of the account.
Portfolio Management — We continually manage the portfolio as dictated by the markets and the client's individual needs. Our portfolio management is not necessarily homogenous across all clients. Before making trades in a client's account we consider certain needs and/or instructions. These may include tax consequences, turnover, income needs, risk tolerance and, at times, the health of the client.