Broker Check

Our Investment Process: Step One

Portfolio Construction

We begin by establishing portfolio objectives, risk parameters and performing cash flow analysis for each client based on their current and future financial goals. We then use this information to develop a personalized Investment Policy Statement (IPS). This allows us to better understand and document our client’s unique financial situation.

Our goal is to build portfolios that best represent our client’s tolerance for “loss” and expectations for return. We feel this is a better and more complete measure of a client’s “risk” tolerance. To assist with our capital market assumptions, we utilize research from multiple sources including JPMorgan, PIMCO, The Leuthold Group, GMO, First Trust, and Ladenburg Thalmann, to name a few.

From here we review traditional asset classes such as Equity and Fixed Income, as well as non-traditional asset classes such as Absolute Return and Alternatives. These strategies include multiple investment types and are primarily comprised of Mutual Funds, Exchange Traded Funds (ETF), Closed End Fund’s and Alternative Investments. In addition, we include both active and passive management, as well as investments across multiple management styles. 

Once this step is complete, we construct our final model which is both strategic and tactical in nature. As markets condition change, updates are made to our return projections and asset class weightings.

Click here to learn more about our Investment Due Diligence & Research process.