Financial Management

 Institutional Quality Investment Management

The hallmark of a successful investor is adhering to a disciplined and properly focused long term investment strategy. After helping our clients select an appropriate investment strategy, we work with our clients to help keep them focused on the execution of their strategy. Progress is measured regularly and the strategy is continuously evaluated. Our recommended process is the same process used by large successful institutional investors, and includes the following critical elements:

  • Development of a strategic asset allocation
  • Selection of investment managers by asset class
  • Establishing a custodial account at a selected brokerage (normally NFS)
  • Monitoring progress through quarterly evaluations of investment performance
  • Annual account reviews, investment strategy evaluations and tax planning
  • Annual account rebalancing
Strategic Asset Allocation
We believe that strategic asset allocation is the primary determinant of portfolio risk and therefore the primary tool in managing investment risk. Our asset allocation recommendations are based on our client's time horizon and risk tolerance and represent a customized long term plan developed to accomplish our client's goals and objectives. We actively evaluate the status of client portfolios and regularly re-balance the asset allocation to predetermined targets. Re-balancing is normally performed on an annual basis to minimize potential tax consequences and to capitalize on rotations of strength in the financial markets.
Investment Manager Selection
We believe that markets can be inefficient pricing mechanisms at times, exposing assets to unexpected risks or presenting unusual opportunities for gains. As a result, we believe that superior active investment managers bring improved returns to portfolios. Our goal is to hire a superior investment manager for each category within the asset allocation. Managers are selected after a rigorous review of the best managers in each category.