In today’s already over-commoditized world, the financial service industry is increasingly doing the same with investment management. There are many companies where a prospective client can fill out a multiple-choice risk tolerance form and be placed into one of five or six portfolios, with names like “growth with income” or “capital preservation.” These portfolios are managed in aggregate by managers that never even meet the client. We are not one of those companies.
We do not find what box a client fits in, but rather build something new to fit them
We collaborate with our clients to craft individualized portfolios that contain different asset classes and investment vehicles appropriate to their goals, preferences and risk tolerance. In doing so, we attempt to go beyond traditional techniques for building portfolios.
The level of collaboration is entirely up to each client
Some clients like to delve into the details, others prefer only the high-level view. By having our clients be part of this process, we have found that they feel more informed and confident with their financial situation overall.
The techniques we use to create the portfolio are another key difference
For years, investors have built portfolios by assembling different assets whose prices seemed to have historically moved independently of one another. We believe the world is evolving due to technology and globalization, and that this evolution casts many of these past assumptions and techniques into doubt.
To keep up with the evolution of the markets, we review the latest research in portfolio management and investment selection. This has led to the acknowledgment that returns are not normally distributed and there is potential for an unpredictable incident with wide-ranging effects on the markets. This requires looking beyond just asset allocation to strategies that may help with volatility when the markets are under stress. (It’s important to note that no strategy will eliminate risk in its entirety.)
We feel that combining the crafting of individual portfolios with a commitment to adapt and respond to an ever-changing world is the best way we can help our clients have the greatest chance of achieving their goals.
Investing involves risk including the possible loss of principal.