Customized Investment Portfolios

The Wealth Network

Investment Process

For Advisor Managed Fee Based Accounts

Our process and investment strategy has changed and morphed over the past 20 years.  We have found traditional asset allocation, while often better than chasing returns or just holding a single asset class, does not always meet the actual investment goals and objectives of our clients.

Instead, we customize investment portfolios that allow for greater flexibility and control, which eliminate conflicts of interest so we succeed when you succeed, and allow our clients to participate in the market while also providing preservation, particularly during volatile markets.

Our Process:

We start with a watch list that consists of 200 to 250 broad based and sector based mutual funds, ETF’s, individual stocks, and alternative investments available to us through our Wealth Management Platform.  With over 20,000 different investment products to choose from, we narrow that list down to a mix of different asset classes and market segments that we feel represent the best that is available in its area of focus.  Being on the watch list does not mean we are currently using the investment, and we are constantly researching and updating the list, with about 1-2% turnover monthly.

While we are always looking for the best of the best from a performance standpoint, it’s equally important that the investments we consider do what they say they are going to do, and do it better than their peers. 

The Portfolios:

From the watch list we build two models – one for Growth and one for Income.  We have found that our clients need and want their investments to grow (particularly younger or more aggressive clients) or provide income (often older or more conservative clients), or some combination of the two (the vast majority of our clients).  We have also recently added an preservation sleeve that allows us to participate in the market yet provide a level of protection for those clients who have a more conservative Risk Tolerance, or who’s time horizon does not allow time to recover from significant losses.

While we update the models each month, we might change what we hold in each model only a few times per year depending on overall market conditions, macroeconomic conditions, or how the investments in the models are performing (remember they need to do what they say they do better than their peers).

We may also change the percentage of each holding in a model (think of this as more like rebalancing), which may happen monthly, quarterly or annually depending on market conditions and outlook.

Customization and Monitoring:

After the models are adjusted each month, we then compare them with what clients are currently holding in their account(s).  Depending on each client’s personal goals and objectives, we may make trades that month to resemble the models more closely or decide to keep the client’s account unchanged.  Unlike many investment advisors, we provide monthly “look-ins” of your account(s).

Occasionally, when the market is more volatile than usual, we may perform updates more often than monthly.

Since each client has different goals, objectives, risk tolerances, and tax situations, trading activity may be different to reflect that.  While it is rare than any one client might represent the actual model(s), the models provide us the needed guidance to know how we want to be invested for either Growth or Income.

The bottom line, our approach provides actively monitored and managed, customized yet flexible, investment accounts that focus on each client’s goals and objectives in a cost effective and conflict free manner.

Investing involves risk including the potential loss of principal.  No investment strategy can guarantee a profit or protect against loss in periods of declining values.  Past performance is no guarantee of future results.  Please note that individual situations can vary.  Therefore, the information presented here should only be relined upon when coordinated with individual professional advice.