Our process begins with the creation of a client’s risk and tax profile and the development of their own written Investment Policy Statement (IPS). We implement the IPS in a tax conscious manner and then monitor, rebalance and revise as changing conditions warrant.
Risk and Tax Profiling
We develop a thorough risk profile for every client. Unlike many practitioners, we separate risk capacity (time horizon, liquidity, cash flow requirements) from risk attitude (one’s personal comfort with risk). We seek to ensure that our clients don’t assume more risk than they can handle both financially and psychologically.
We also develop a comprehensive tax profile of the client’s household (including companies and trusts) in order to identify investment tax planning opportunities.
Investment Policy Statement
Every client receives a comprehensive Investment Policy Statement (“IPS”) which sets out a clear written plan for the long-term management of assets. This personalized plan helps clients stay on course particularly during periods of market turbulence or exuberance.
Investment Tax Management
We integrate investment and tax planning. Asset allocation, manager and vehicle selection decisions, our placement of assets in the household, and our rebalancing parameters are all implemented with a view to optimizing after-tax results.
Monitoring and Rebalancing
Our portfolio management process includes regular asset class reviews, manager evaluations and new strategy and manager searches. We constantly seek more effective or lower-cost means of implementing strategies. We monitor each client’s portfolio regularly in relation to their investment plan and perform individual rebalancing where appropriate.
We are in regular contact with our clients. Our communications include:
- Meetings as frequently as is required or preferred;
- A comprehensive annual review;
- Regular custodian account reporting;
- Quarterly household portfolio and account reporting; and
- Internet access to a comprehensive view of client accounts.