Portfolio management

The first step in our portfolio management process is to determine the overall objective and goal of each client by preparing a financial plan. Once we are comfortable that we understand what a client is trying to achieve, we can then discuss the proper asset allocation for their situation. We review this allocation recommendation from an “asset class” perspective using our established model portfolios. Once a client agrees with the recommendation, we would take the following steps:

  • Identify particular securities for each needed asset class. For certain sectors of the equity and bond market, we use passively managed (i.e. indexed) investments and for others actively managed products. We explain to the client why a particular strategy works best in each case.
  • We purchase the necessary securities to complete the allocation.
  • We monitor the investments and, in the case of actively managed products, make sure that they are performing within acceptable parameters as compared to their peers and their appropriate benchmark. For taxable accounts, we will also inform the client of any potential tax liability that could result from terminating one account in favor of another.
  • In the case where rebalancing is necessary, or we have made changes in the particular model that is being used for a client, we will recommend and implement the necessary trades to make these adjustments, once again after informing the client of any tax consequence that could result from these changes.
  • In addition to receiving account statements from the particular custodian(s) that is holding the client’s cash and securities, they will also receive a performance summary from SWA. These reports are provided to our clients at least annually and in many cases semi-annually depending on the clients’ preference.