Investment Management

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Analyze Existing Portfolio

  • Evaluate current portfolio vs. your risk tolerance, liquidity, and cash flow needs.
  • Estimate all-in current fees including advisor and underlying manager expenses.
  • Estimate and seek to minimize tax costs from any potential changes we recommend.

Determine Asset Allocation and Analysis of Risk

  • Work with you to build a portfolio that aligns with your long-term goals.
  • Establish an Investment Policy Statement to define target allocation ranges by asset class.
  • Select the appropriate funds and managers to implement our recommendations—we have no proprietary products, so unlike many other advisors our focus is on finding the best managers for our clients, not the ones that pay us the most.
  • Returns after taxes and after fees are what matter. We help you determine the best location for each investment (e.g. individual account, trust, or IRA) to maximize tax-efficiency. We recommend lower-cost, passive funds when possible, and only pay more for managers we believe can deliver unique returns.

Identify and Evaluate Private Investment Opportunities

  • Source and evaluate investment opportunities including private funds and direct investments.
  • We believe alternative investments provide the potential to pursue risk-adjusted returns that may not be readily available in the public markets.
  • We receive zero commission from any funds we recommend to you.
  • Coordinate and track all capital calls and receipt of distributions and report performance for your private investments.

Consolidated Performance Reporting

  • View performance for your total portfolio, including illiquid investments and assets managed by other advisors vs. relevant benchmarks.
  • Provide a comprehensive overview of your assets to help you optimize investment decisions.

Rebalancing of Portfolio

  • We don’t believe you can time the market, but it is important to rebalance your portfolio when asset class weights have drifted away from their targets to ensure you are taking the appropriate amount of risk.
  • Harvest losses when possible which can be used to offset gains to help minimize taxes.

What is Investment Management?

  • What is investment management?

    In short, investment management is the process of buying, selling, and handling financial assets and other investments. The purpose of investment management is to manage a client’s assets to help them reach their goals. In fact, assets can include bonds, equities, and commodities like precious metals (gold and silver). Further, clients include individuals, insurance companies, governments, educational institutions, retirement funds, and pension plans. Plus, investment management deals with portfolio holdings through short- or long-term strategies. In addition, managers also handle banking, tax services, and budgeting. Other names for investment management include portfolio management, money management, and wealth management.

  • What is the difference between investment banking and investment management?

    In general, investment management and investment banking both deal with getting money from investors and giving it to companies that need capital. However, there is a key difference in the way that these two jobs. On one hand, investment management involves making investment decisions and conducting proper asset allocation. On the other hand, investment banking handles deals for companies and governments that include mergers and acquisitions like IPOs.

  • Why is investment management important?

    Investment management is important because it involves handling the assets of a company or individual. Usually, investments are the best way to expand and evaluate the health of the organization.

What are the types of investments?

There are many different types of investments. Here is a list:

  • Cash: Cash investments are low-risk, low-reward assets that include bank accounts, term deposits, and high-interest savings accounts.
  • Growth: Growth investments are made for long-term investors that can navigate market fluctuations.
  • Shares: Share are a type of growth investment. Primarily, they are used to grow previous investments medium- to long-term. Usually, investors that own shares get their income from dividends, or portions of a company’s income sent to shareholders.
  • Property: Property is also considered a growth investment as housing prices rise immensely over time, whether it’s medium- or long-term. However, property investors risk losing money to price drops as well.
  • Fixed interest: Usually, when people hear fixed interest, they think of bonds. Bonds are a way for investors to lend money to governments or companies. Then investors receive a rate of interest when they get paid back.
  • Defensive investments: These are lower risk investments than growth investments since they are more about earning consistent income.

What is the investment management process?

Usually, investment managers are the best of the best in the finance industry. Fortunately, there is an investment management process that they follow. Here are the steps that investment managers take when working with a client:

1) Establish investment objectives and goals

The first step any person should take when working with any client is to figure out what they want. And it’s no different for investment managers. In fact, they must discuss what the client’s short- and long-term financial goals are. Plus, they must help the client understand how their investments impact their current and future cash flow. Finally, figuring out where the client is in the “accumulation-income-generation-preservation-distribution” cycle is vital for their investment goals to match their investment portfolio.

2) Determine risk tolerance and proper asset allocation

On one hand, risk tolerance deals with a risk analysis model that provides information about risk-reward, return expectations, and time-horizons on investments. On the other hand, asset allocations regard the information gained from a risk analysis to help create the best investment portfolio for the client.

3) Create the investment portfolio

To create the most suitable investment portfolio, investment selection is essential. For example, a few investments that investment managers help you choose from include Mutual Funds, Insurance Products, Bank Products, Annuities, Managed Accounts, Individual Securities, and Wrapped Accounts.

4) Monitor and report

Once everything is set up, investment managers evaluate the client’s portfolio performance based on their objectives, the broad economy, and the investment marketplace. To keep them up to date on the results, an investment manager and the client agree to a time frame to meet and discuss them. The goal of this meeting is to make sure everything is on track and meeting stated objectives and goals.

What skills are needed for an investment manager?

Investment managers deal with other people’s money. And in most cases, it’s a large amount of assets. Whether the investment manager is dealing with an individual or a company’s money, they need to meet a certain criteria. Here are a few skills that investment managers must have:

  • Analytical skills.
  • Interest in financial markets.
  • Customer service.
  • Trustworthy.
  • Discretion.
  • Communication skills.

What does an investment manager do?

As mentioned before, the purpose of investment management is to reach a client’s goal through managing their assets. Whether the strategy is short- or long-term, investment managers hold immense responsibility. In fact, they have to register with the SEC while being considered a trustee to the client if they manage assets over $25 million. Further, a few ways that they do that include tasks like:

  • Financial planning and advising.
  • Portfolio allocation (mixing bonds and stocks correctly).
  • Financial statement analysis.
  • Estate and retirement planning.
  • Asset distribution.
  • Equity research.
  • Buy and sell recommendations.
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