Investment Planning Philosophy
Every investment opportunity carries some level of risk. Our approach to investment management relies on core principles developed and tested since the inception of our firm. These principals allow you to manage your risk in a more diversified and educated manner:
Asset allocation provides the foundation to help manage both portfolio risk and return
No single money management firm can be all things to all people
Our most important role is to be your objective advocate
We have combined these time-tested beliefs with cutting-edge technology to deliver an innovative approach to managing wealth. We leverage the power of technology to drive our client-centered five-step investment process.
Investment planning is both art and science. We combine a great depth of technical knowledge with a real world, real people orientation to create a plan that you feel confident about implementing over the long term.
Diversification through style, asset class and manager selection
Every investment professional you speak with will discuss diversification. What's crucial to a good long term plan is to diversify on multiple levels. This can be accomplished by incorporating multiple asset classes; and then further diversifying each asset class into multiple styles; and then finally selecting a variety of managers to carry out the plan.
*Diversification cannot elmininate the risk of investment losses.
Investment Planning Process
In addition, we have a time-tested process for the planning and deployment of all investment recommendations we provide on your behalf. We will never implement before we plan. This alone differentiates us from many firms who hope to manage your assets.
Step 1 - Advice, consulting and planning:
We ask the right questions to lay a solid foundation for your investment plan. We review your current financial situation in detail to better understand your short and long-term objectives, such as liquidity requirements, risk tolerance, return objectives and income requirements. Working with you, we use this information to clearly define your goals and expectations.
Step 2 - Portfolio modeling analysis and design:
Our aim is to help potentially maximize your investment returns within the context of your financial goals, while minimizing the level of risk. To assist us in this step of our process, we utilize sophisticated modeling tools that illustrate the future implications of different portfolio scenarios related to your financial situation, assets and cash flow needs. Together we then agree on your optimal allocation.
Step 3 - Investment policy statement development:
Your Investment Policy Statement (IPS) codifies the conclusions from your portfolio modeling analysis. This comprehensive document sets forth how we will implement and manage your portfolio and delineates your goals and investment strategy.
Implementation takes your IPS one step further by clearly defining the specific investments to be included in your portfolio and proposing how and when they should be incorporated. Your IPS serves as the guide for the ongoing management of your portfolio, ensuring a common understanding of your strategy and a consistent and focused execution of your plan.
Our technology platform features a research-driven managed accounts program that offers:
Step 4 - Manager search and selection:
The cornerstone of our investment management philosophy is built on the core belief that we must provide access to a broad universe of premier institutional money management firms through an objective due diligence process. We identify managers based on skill and consistency in each asset class and style. Managers are ultimately selected utilizing a series of statistical screening and in-depth on-site interviews. Our goal is to work with you to identify managers who best fit within the context of your overall investment strategy.
Step 5 - Ongoing review, reporting and rebalancing:
Using a disciplined, multi-step approach, we will regularly assess your evolving needs and market events. This routine process helps ensure your plan and our resources are working to your best advantage. We will provide comprehensive reports that illustrate your investment holdings, asset allocation, transactions and performance. These reports help us keep your assets aligned with your long-term investment goals and objectives. Our account aggregation capabilities let us generate detailed reporting on assets held both within and outside of Lincoln, allowing us to understand and evaluate your complete financial picture.