Our approach to managing client portfolios is founded of the following disciplined steps and procedures.
Development of an Investment Strategy
We devote considerable time to gaining a thorough understanding of our clients before developing any investment strategies. This step includes defining their ambitions, goals, prior experiences, tax status, liquidity requirements, time horizon and risk tolerance. Our goal is to develop a strategy which achieves each client’s investment objectives within an acceptable level of risk. Our team also takes into account realistic capital market assumptions, giving our clients additional confidence of a favorable outcome. This customized strategy is then presented and the rationale behind our recommendations is carefully explained.
Implementation of the Investment Strategy
Once a client understands and endorses the strategy, our team begins the implementation process. The first step is to construct an Investment Policy Statement, a written document that serves as a road map for the investment strategy. This document is uniquely crafted for each investor and becomes particularly valuable during periods of market volatility, when investors may be tempted to let their emotions dictate investment decisions. Next, our team assembles a list of investments and fund managers who are best qualified to manage the individual pieces of the allocation. Each fund manager is subjected to a rigorous evaluation process consisting of a number of quantitative and qualitative screens. The McCarthy Wealth Group uses only non-proprietary managers, eliminating any inherent conflicts of interest. Once managers are selected and approved, the investment strategy is implemented.
Monitoring of the Investment Strategy
As wealth management consultants, one of our primary responsibilities is to track each aspect of our client’s investment program including performance reporting, rebalancing and reallocating assets. Therefore, once implementation is completed, our team deploys a strict monitoring process allowing us to adapt to future opportunities while appropriately managing downside risk. Quarterly, our team assembles a custom report analyzing each position in the portfolio in addition to monitoring the correlation of the investments and fund managers. Through careful supervision, we are commonly able to identify potential issues before they impact portfolio performance. This quarterly communication also serves as an opportunity to learn of any changes in our clients’ lives that may prompt us to make additional adjustments to the plan.