Goal Identification: We begin by understanding each client’s short term and long term needs and aspirations. Often, we help the client focus and define their goals. This effort includes frank discussion and scenario analysis on important risk management issues such as potential short-term loss associated with market volatility.
Asset Allocation: With the goals understood, we provide guidance on the allocation of assets among potential investment categories. Utilizing a broad understanding of risk, return and correlation characteristics of the various categories along with many decades of real world investment experience, we help the client create an appropriate allocation framework. These are critical decisions to the long-term success of the client.
Portfolio Management: Within the parameters of the asset allocation plan, we build an efficient portfolio using low cost, passive investment vehicles. Our portfolio construction uses factor-based strategies, which combine the best of passive investing (diversification, low fees) with the best of active management (the potential for value-added returns). We value diversification and cost efficiency along with total return potential. The portfolio is continuously monitored; we adjust and rebalance as needed.
Communications: Timely performance reporting, goal tracking and related communications are provided throughout the effort. We supplement these regular communications with topical “white papers” and insightful commentary. Most importantly, we provide ongoing perspective and rational counsel to help with the never-ending stream of worrisome events that often cause damaging behavioral response among investors.
Call (585) 485-0135 to discuss how a factor-based approach could pay off for you.