Investment Process
We pursue a well-diversified portfolio approach to minimize volatility, while also recognizing that not all products are suitable to all investors. We construct each client’s unique portfolio based on their personal circumstances, including risk tolerance, return expectation, investment objectives and time horizon. We provide efficient and effective exposure to traditional markets, and temper the systematic risk of the portfolio through diversification into alternative-strategy investments where appropriate.
Our process of portfolio construction for our clients, and the management of this portfolio on a continuous basis, involves the following steps:
You
We spend time to get to know you and clearly understand your financial goals, but also your fears, your history, your dreams and your desires.
Strategic Asset Allocation
What is the best allocation range of cash, fixed income, equity, real assets and alternative strategy investments that is most likely to achieve the desired risk/return target?
Tactical Asset Allocation
Depending on the current economic situation and our outlook on world markets, we tailor your asset allocation within the strategic ranges.
Asset Class Specifics
Within each main asset group (cash, fixed income, equity, alternative strategies, real assets), we determine what is the best mix of investments for you based on your unique situation. Also, we look at geographical and industry allocation.
Security Selection
We choose appropriate investment solutions to fill each bucket of your unique portfolio. Some of these solutions will be passive, index-linked products, others will be proven active managers in niche markets, others will be alternative strategies in specialized fields that provide overall portfolio security and diversification.
Monitoring
Once your portfolio is initially allocated, we continuously monitor our situation and the overall economic situation and market outlook to ensure, to the best of our ability, that your portfolio is always positioned to perform in line with your needs and expectations.
Phasing
We recognize that we cannot call market tops or bottoms, and therefore we phase our clients’ capital into and out of allocations over time.