Wealth Management - Our Investment Approach

Asset Allocation

Asset allocation is an investment strategy that aims to balance risk and reward by apportioning portfolio assets to an individual's goals, risk tolerance, and investment horizon. The process of determining how a portfolio should be built is based on capital market assumptions for each asset class. There is not a simple formula that can find the right allocation mix for every individual. However, most investment professionals believe that asset allocation is one of the most important decisions that investors make. Selecting individual securities is secondary to the way that they are allocated in stocks and bonds which will be the primary determinant of investment results.
(*Asset Allocation does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.)

We want our clients to understand the role each investment plays in their portfolio by defining each asset class in one of three categories:

• Growth: Asset classes that provide investment return primarily through price appreciation and the willingness of a future buyer to purchase the asset at a higher price. This asset class also has substantial risk of loss in terms of price decline or default. Growth assets have the widest dispersion of return outcomes.
• Preservation: Asset classes that seek to preserve investment value and provide consistent coupon payments to investors. These investments generally have a redeemable value or very low volatility of their return outcomes. The majority of the return should be income payments as opposed to price movement.
• Inflation Protection: Asset classes whose return is often tied directly to consumption or inflation perceptions. Returns can be a mixture of price appreciation and income, with more modest dispersion of return outcomes. These assets have scarcity or replacement value.

Listening to clients

We view our initial meetings with you as the most important step in our process. Every piece of advice we provide is predicated upon our ability to understand and connect with you.

• Understand your risks, family and decision making process
• Help define what your wealth means to your family
• Determine goals for your wealth and your objectives
• Develop a holistic plan for your entire financial balance sheet

Financial & Wealth Planning

Wealth planning is essential in order to provide the most impact on transferring wealth to future generations or philanthropic endeavors. No amount of investment returns can overcome poor planning.

• Plan for future liquidity requirements and cash flow needs
• Create a giving plan if there are philanthropic areas of interest
• Work with your advisors in tax and estate planning
• Develop an investment plan that incorporates your estate and tax plan

Portfolio Construction

Portfolio construction is the process of understanding how different asset classes and their weightings impact each other, performance and risk. By taking a top-down approach based on risk tolerance and investment objectives, you then select the individual investments. This ultimately provides a better chance of meeting your goals with the level of risk and time horizon you are comfortable with.

• Review current investment portfolio and how to transition with tax considerations
• Customize portfolio recommendations for liquidity and income needs
• Incorporate real and unique assets, business interests, or concentrated holdings into the overall portfolio mix

Performance Reporting

Our reporting technology allows us to communicate performance and valuations to custom goals and objectives.

• Engage in performance conversations and accountability to index comparisons
• Our online portal allows you to view and experience your portfolio
• Feedback on how you feel about the portfolio and changes in value is critical to our ongoing portfolio construction
• Constant discussion regarding changes to your financial goals

Ongoing monitoring

We believe frequent conversations and regular formal reviews for each client's portfolio is essential to building a lasting relationship and mutual trust. Rebalancing the portfolio to meet strategic objectives, while recognizing the certainty of taxes, is always weighed against the unpredictable markets.

• Disciplined rebalancing while being thoughtful about taxes
• Provide market views against the backdrop of your portfolio
• Engage with your tax and trust and estate advisors on future planning opportunities

(*Rebalancing/Reallocating can entail transaction costs and tax consequences that should be considered when determining a rebalancing/reallocation strategy.)