We start by developing a client’s customized Investment Policy. Their resulting Investment Policy Statement dictates the initial allocation of a client’s assets; the permissible range for each asset class (the minimum and maximum percentage that an asset class may be represented in the portfolio); the type of investments that may be included in the portfolio; and the triggers and timing with which a rebalance must take place to reflect the client's tactical allocation.
The Investment Policy Statement is our blueprint and the client’s agreement to the parameters under which their portfolio will be actively managed on an ongoing basis.
We select the most appropriate investments for each asset class. Investments may include individual stocks or bonds, ETFs (exchange traded funds), mutual funds or derivatives.
When selecting specific ETFs or mutual funds, we utilize a multi-screening process and state-of-the-art research software to perform peer-to-peer comparisons (comparing ETFs and/or mutual funds in the same asset allocation category). This process allows us to determine the highest performing ETFs and/or mutual funds for the particular asset class in which they reside.
We analyze current economic data on a daily basis to determine if changes need be made to tactical allocations.
On a quarterly basis, we rebalance a client’s portfolio to their specific tactical allocation. We also run quarterly peer-to-peer diagnostic comparisons on each specific ETF and/or mutual fund included in a client’s portfolio to determine if each of those specific investments continues to outperform their peer group or if they should be replaced.
Our quarterly updated Performance, Asset Allocation and Individual Investment Monitoring Reports give clients a clear view of their full investment picture in a meaningful and digestible manner.