Asset management is a dynamic process that requires numerous inputs and interactions among professionals from diverse fields.
The accomplishment of a financial planning task requires a refined approach, capable of adjusting to shifting market conditions, combining the skills and dedication of all those involved. Our approach to managing assets stems from our collective wisdom and progress in the realms of financial economics, data analysis, and technology. The process we employ for each and every client can be summarized as follows.
OUR ASSET MANAGEMENT PROCESS
1. Interaction with Client
Individual and institutional investors are the first step in the process. Furthermore, we evaluate their existing portfolio and investments in real assets. We also take into consideration the taxation structure and regulatory framework. The proposed investment solution must be optimal from a tax perspective and compatible with regulatory and operational constraints.
2. Plan Development
Properly conceiving and executing a financial strategy can assist private investors in achieving their individual objectives and guaranteeing financial security. Institutional clients need a well-defined framework and an action plan to help them manage their assets, liabilities, cash flows, and the risks they face, efficiently. The planning phase involves the creation of an extensive financial strategy based on your goals and tolerance for risk. In most cases, the outcome is an asset allocation recommendation. In this step we also decide on basic operational issues, such as the most appropriate custody platform for your assets. Before continuing to Step 3, we make sure that the client comprehends the proposed plan.
3. Portfolio Construction
The asset allocation decision starts the construction of an investment portfolio. The strategic asset allocation decision refers to the allocation of capital to major asset classes (e.g. cash, bonds, stocks) that are optimal in light of an investor's risk profile, objectives, and constraints. A constant mix of asset classes is the result of the SAA decision in most cases. Changes in market conditions and investment opportunities are likely to affect the proportion of each asset class in the investment portfolio. Real economic activity and financial markets are characterized by cycles (temporary changes in fundamentals) as well as structural changes (permanent changes in fundamentals) Furthermore, the decisions of fiscal and monetary authorities can have a direct bearing on asset values. Holding the asset allocation mix constant indefinitely may not be optimal because of the dynamic behavior of economic variables and financial markets. The phase of the business cycle and the conditions of credit and capital markets are what our investment committee is responsible for determining. The ideal portfolio may require minor to moderate deviations from the strategic asset allocation mix. Tactical Asset Allocation (TAA) is the name given to this dynamic adjustment. The next phase of the portfolio creation procedure involves identifying the specific elements of the investment portfolio. Given the strategic allocation of equities, for instance, we use our proprietary portfolio construction models to identify the stocks (and their weights) that will constitute the equity part of the total portfolio. When determining portfolio weights, we consider the risk-return tradeoff.
4. Plan Implementation
Your portfolio should be aligned with your risk preferences, goals, and investment objectives by taking the appropriate steps to ensure the best trade execution, tax-efficient trading, and tactical rebalancing. Changes in the investment opportunity set can result in changes in the optimal asset allocation mix. Significant changes in the investment opportunity set can result in changes in the optimal asset allocation mix. To reflect such developments, we rebalance your portfolio in a way that reflects such developments. A wide array of strict criteria are met to make adjustments. The expected benefit of rebalancing your investment portfolio is larger than the transaction costs involved.
5. Monitoring
Continuous monitoring and frequent performance evaluations will ensure that your plan stays on track. In the event of significant modifications in your circumstance, such as a life event, the procedure commences by conducting an analysis of the new circumstance.s.
