ASSET ALLOCATION MANAGEMENT

It is critical that the asset allocation of a client's consolidated investment portfolio is properly managed. Asset allocation management is not a static process; rather it is an evolving, ongoing process.

ASSET ALLOCATION MANAGEMENT

• Requires rebalancing when the market movement causes sectors, styles and major components to become out of balance as originally allocated.
• Requires reallocating when a client’s situation, future, feelings, and family dynamics changes.

The firm monitors each fund and manager employed on behalf of the client. We want to ensure that the fund or manager is achieving desired performance when compared to benchmark indexes or peer groups of managers, but also that the level of risk in a fund is within our client’s appetite.

Monitoring our funds and managers portfolio composition for redundancy, overlap and style drift and making asset allocation adjustments accordingly ensures that asset allocation policy is adhered to.

Please remember that diversification and asset allocation do not guarantee a profit nor protect against loss in a declining market. They are methods used to help manage risk.

PERFORMANCE & RISK MANAGEMENT

You will always be able to find funds and managers that are outperforming the ones that we employ in any given time period. You must ask, “At what level of risk is that outperformance being achieved with?” We are much more comfortable with consistent returns year after year rather than trying to hit the ball out of the park and risking large losses in doing so.

You beat the market even when you get less than the market returns when your returns are achieved with less than the risk of the market. This is what we call “risk adjusted return”.

REPORTING

The frequency in which a client desires to receive communication is a personal decision. Some clients like more, some less than others. We will strive to meet each client’s desire for level of communication. At the very least, we report investment portfolio performance and provide market commentary on a quarterly basis. Typically our custodians provide monthly statements for each account held at the custodian firm.

The firm embraces technologies as they become available to provide clients with market updates and other information and resources that the firm believes client’s will benefit from receiving. Clients may always opt out of receiving these.