Having an individual relationship with the advisor, each client can develop a personal financial plan and asset allocation strategy.
The overall objective is to achieve the highest possible return on a risk-adjusted basis given the client’s objectives, risk tolerance, and time horizon.
After deciding on the appropriate asset allocation, the next step is selection of the best securities for each asset class. From an initial universe of thousands of securities, disciplined fundamental and technical analysis is used to screen for the most attractive securities.
Normally a client’s portfolio remains close to fully invested, but in adverse market conditions cash levels may be raised to preserve capital.
The turnover rate of a portfolio depends on a client’s objectives as well as market conditions. Most portfolios are invested for the long term. Because each portfolio is individually managed, it is often possible to time realization of gains and losses for maximum tax advantage. With any investments, prices will fluctuate and losses may be incurred.