Setting the Expectation for Portfolio Management
While most every firm website will discuss delivering a custom strategy for your portfolio, we truly live up to this commitment. For us, we understand no two individuals are alike. And as such, neither should our client portfolios.
So the broader view is that we create your “own index” that is directly aligned to accomplishing your defined goals. We step away from the big firm mentality of having 5 risk models (conservative, moderately conservative, moderate, moderately aggressive, and aggressive) that all clients should somehow fit into.
In other words, through our direct relationships and intensive due diligence behind manager selection we look at an individual level program that incapsulates structure per goal. PPWG™ achieves this through a 3-Layer model outlined below.
We further our views with investigating unique management approaches. Going beyond traditional fundamental and quantitative analysis, these approaches include employee satisfaction with their employer, restricted shareholder sales monitoring from high level executives, and directly interviewing CEO’s of the companies we invest in among others. By doing so, we have developed a multi-CIO mindset that provides deep insights to tackle the ever-changing financial markets powered by the collective or our managers.
We utilize Natixis Portfolio Clarity to bring in institutional level tools, insights, and research to provide a thoughtful and individualized approach. We connect with a team of over 20 investment professionals monthly to look at our allocations at an individual account level to review performance and strategize around our macro outlook of world events. To learn more, view this video on how they partner with us.
Our final layer allows us to provide real-time updates and management while tackling the nuances and efficiency of an actual custom portfolio. We utilize Integrated Portfolio Implementation through Managed Portfolio Advisors.
So we go beyond having the ability to have multiple managers inside of one account. We are able to provide unparalleled tax management and communication between managers with custom parameters. One often overlooked example of what this means to you is through our active tax harvesting overlay. Our communication through manager and ability to pause certain trades to avoid short term gains vs. long term gains or wash sales backed by research.
Furthermore, PPWG takes it a step further and can add additional focus in any given year. Especially if a client has a large realized capital gain through a business or property sale. We accomplish this by our coordination with MPA’s team of portfolio managers that determine the best decision. In summary, these decisions will be driven by multi-factor research and not just one single reason. To learn more, view this video on how they partner with us.
Setting the Expectation for Portfolio Management
While most every firm website will discuss delivering a custom strategy for your portfolio, we truly live up to this commitment. For us, we understand no two individuals are alike. And as such, neither should our client portfolios.
So the broader view is that we create your “own index” that is directly aligned to accomplishing your defined goals. We step away from the big firm mentality of having 5 risk models (conservative, moderately conservative, moderate, moderately aggressive, and aggressive) that all clients should somehow fit into.
In other words, through our direct relationships and intensive due diligence behind manager selection we look at an individual level program that incapsulates structure per goal. PPWG achieves this through a 3-Layer model outlined below.
We further our views with investigating unique management approaches. Going beyond traditional fundamental and quantitative analysis, these approaches include employee satisfaction with their employer, restricted shareholder sales monitoring from high level executives, and directly interviewing CEO’s of the companies we invest in among others. By doing so, we have developed a multi-CIO mindset that provides deep insights to tackle the ever-changing financial markets powered by the collective or our managers.
We utilize Natixis Portfolio Clarity to bring in institutional level tools, insights, and research to provide a thoughtful and individualized approach. We connect with a team of over 20 investment professionals monthly to look at our allocations at an individual account level to review performance and strategize around our macro outlook of world events. To learn more, view this video on how they partner with us.
Our final layer allows us to provide real-time updates and management while tackling the nuances and efficiency of an actual custom portfolio. We utilize Integrated Portfolio Implementation through Managed Portfolio Advisors.
So we go beyond having the ability to have multiple managers inside of one account. We are able to provide unparalleled tax management and communication between managers with custom parameters. One often overlooked example of what this means to you is through our active tax harvesting overlay. Our communication through manager and ability to pause certain trades to avoid short term gains vs. long term gains or wash sales backed by research.
Furthermore, PPWG takes it a step further and can add additional focus in any given year. Especially if a client has a large realized capital gain through a business or property sale. We accomplish this by our coordination with MPA’s team of portfolio managers that determine the best decision. In summary, these decisions will be driven by multi-factor research and not just one single reason. To learn more, view this video on how they partner with us.
What is Portfolio Management?
Portfolio management is the strategy behind choosing and supervising a number of investments. In short, these investments are set to meet the long-term goals and risk tolerance of a client or business.
Portfolio management entails the aptitude to evaluate strengths and weaknesses, opportunities and threats across all of your investments. The choices your portfolio manager will make will tend to involve trade-offs. A lot of these trade-offs entail debt versus equity, to domestic versus international, and growth versus safety.
PPWG work as licensed portfolio managers on behalf of our clients. Our main objective is to maximize the investments’ anticipated yield. But also assessing this with a level of risk exposure that our client’s feel comfortable with.
With continually evolving requirements on retirement plans, we begin by taking a step back. Retirement plans can be utilized not only to provide benefits, but can be structured several ways to accomplish goals. These may be retaining talent, compensation plans for executives, or lowering taxable income. Finally, our added transparency and fiduciary relationship ensures our clients do not take on unnecessary risk.
What is Portfolio Management?
Portfolio management is the strategy behind choosing and supervising a number of investments. In short, these investments are set to meet the long-term goals and risk tolerance of a client or business.
Portfolio management entails the aptitude to evaluate strengths and weaknesses, opportunities and threats across all of your investments. The choices your portfolio manager will make will tend to involve trade-offs. A lot of these trade-offs entail debt versus equity, to domestic versus international, and growth versus safety.
PPWG work as licensed portfolio managers on behalf of our clients. Our main objective is to maximize the investments’ anticipated yield. But also assessing this with a level of risk exposure that our client’s feel comfortable with.
With continually evolving requirements on retirement plans, we begin by taking a step back. Retirement plans can be utilized not only to provide benefits, but can be structured several ways to accomplish goals. These may be retaining talent, compensation plans for executives, or lowering taxable income. Finally, our added transparency and fiduciary relationship ensures our clients do not take on unnecessary risk.
The Different Styles of Portfolio Management
Typically, Portfolio Management falls into one of two different styles: Active or Passive Management.
- Active management entails trying to beat the performance of an index. This is done by actively buying and selling individual stocks and other assets. Closed-end funds are typically actively managed. It is not uncommon that a scale of different quantitative and qualitative models will be used to aid active managers in assessing prospective investments.
- Passive management on the other hand is more of a long-term strategy. This is considered more of the set-it-and-forget-it type of plan. Usually this will entail investing in one or more exchange-traded (ETF) index funds. Another term for this style of management is index investing.
Working with PPWG, we can help decide what approach is best for you and your personal goals.
The Different Styles of Portfolio Management
Typically, Portfolio Management falls into one of two different styles: Active or Passive Management.
- Active management entails trying to beat the performance of an index. This is done by actively buying and selling individual stocks and other assets. Closed-end funds are typically actively managed. It is not uncommon that a scale of different quantitative and qualitative models will be used to aid active managers in assessing prospective investments.
- Passive management on the other hand is more of a long-term strategy. This is considered more of the set-it-and-forget-it type of plan. Usually this will entail investing in one or more exchange-traded (ETF) index funds. Another term for this style of management is index investing.
Working with PPWG, we can help decide what approach is best for you and your personal goals.
The Key Elements to Portfolio Management
There are several elements that go into portfolio management, but three of the key elements are asset allocation, diversification, and rebalancing.
- Asset allocation basically entails a long-term mix of assets. PPWG tries to create a strategy that helps balance the risks and rewards for your investments. Our goal is to assess the more unpredictable assets to maximize the return with minimum risk by dispersing your funds in other investments that wouldn’t correlate with these risks. As always, PPWG will work with you to come up with a strategy that you are comfortable with. Whether that would be a more aggressive or conservative strategy is your choice.
- Diversification is very important when it comes to your portfolio. The market sometimes has a way of surprising everyone. Because of this there is no “sure-thing” when it comes to consistency of investing. The best way to protect your financial security is to diversify your investments into several asset classes. By diversifying your investments, you’re offering a wider coverage and assists to spread both risk and return with the asset class. Appropriate diversification aims to gain profit from all sectors over time but with less risk to the client.
- The other key element to portfolio management is rebalancing. Rebalancing is crucial as you will need to be able to adjust investments or strategies to try and attain the original goals. Therefore, rebalancing usually takes place during annual meetings with your portfolio manager. PPWG will always work and rework to find the best strategy to hit your personal and business goals.
With continually evolving requirements on retirement plans, we begin by taking a step back. Retirement plans can be utilized not only to provide benefits, but can be structured several ways to accomplish goals. These may be retaining talent, compensation plans for executives, or lowering taxable income. Finally, our added transparency and fiduciary relationship ensures our clients do not take on unnecessary risk.
The Key Elements to Portfolio Management
There are several elements that go into portfolio management, but three of the key elements are asset allocation, diversification, and rebalancing.
- Asset allocation basically entails a long-term mix of assets. PPWG tries to create a strategy that helps balance the risks and rewards for your investments. Our goal is to assess the more unpredictable assets to maximize the return with minimum risk by dispersing your funds in other investments that wouldn’t correlate with these risks. As always, PPWG will work with you to come up with a strategy that you are comfortable with. Whether that would be a more aggressive or conservative strategy is your choice.
- Diversification is very important when it comes to your portfolio. The market sometimes has a way of surprising everyone. Because of this there is no “sure-thing” when it comes to consistency of investing. The best way to protect your financial security is to diversify your investments into several asset classes. By diversifying your investments, you’re offering a wider coverage and assists to spread both risk and return with the asset class. Appropriate diversification aims to gain profit from all sectors over time but with less risk to the client.
- The other key element to portfolio management is rebalancing. Rebalancing is crucial as you will need to be able to adjust investments or strategies to try and attain the original goals. Therefore, rebalancing usually takes place during annual meetings with your portfolio manager. PPWG will always work and rework to find the best strategy to hit your personal and business goals.
With continually evolving requirements on retirement plans, we begin by taking a step back. Retirement plans can be utilized not only to provide benefits, but can be structured several ways to accomplish goals. These may be retaining talent, compensation plans for executives, or lowering taxable income. Finally, our added transparency and fiduciary relationship ensures our clients do not take on unnecessary risk.
Benefits of Portfolio Management
Make the Right Investment Choice
One of the main advantages to having a Portfolio Management strategy is that it ensures you make the right investment choices. By having a portfolio it give you a complete assessment of all your assets. By having this holistic view, you’re able to see any gaps in your current portfolio and make adjustments to hit your financial goals. It enables you and your counsel to make informed decisions about what type of investments are right for your portfolio.
Track Your Investment Performance
Another great advantage of having a portfolio is that you’re able to track your investment performance. This allows you to adjust and rebalance your portfolio. For example, say one asset isn’t performing well or not as expected, you can sell and then reinvest in a more rewarding investment.
Maximize Your Return On Investment
A portfolio allows you to invest in a regular and disciplined manner. The main objective of portfolio management is to maximize your return on investment. One way you can help benefit your earnings it to invest often. If you’re able to set a certain amount of fund aside each month specifically for investing, you’ll be able to grow your portfolio much faster.
Manage Your Liquidity
You’re able to manage your liquidity with a good portfolio management strategy. For example, you may have funds in an investment that you may need in an urgent manner. With the correct portfolio management, you can sell off these assets to ensure you have the funds you need in that emergency.
Let's You Evaluate the Risk/Reward on Investments
One of the great benefits of portfolio management is being able to balance risk and reward for your investments. Not all investments are equal, some are riskier but tend to be more rewarding. Others are more conservative and produce lower returns. By working with a portfolio manager, you’re able to come up with a diversified portfolio that has the correct amount of risk you’re comfortable taking. Making it the right plan for you.
Avoids Financial Disaster
A proper Portfolio Management plan will help you avoid major risks and disasters while being able to maximize your returns. Even if one of your risky investments fails, by diversifying your investments you’re able to avoid financial disasters to your overall portfolio. And by having the structured framework of a portfolio you can maximize your return even with limited funds.
Benefits of Portfolio Management
Make the Right Investment Choice
One of the main advantages to having a Portfolio Management strategy is that it ensures you make the right investment choices. By having a portfolio it give you a complete assessment of all your assets. By having this holistic view, you’re able to see any gaps in your current portfolio and make adjustments to hit your financial goals. It enables you and your counsel to make informed decisions about what type of investments are right for your portfolio.
Track Your Investment Performance
Another great advantage of having a portfolio is that you’re able to track your investment performance. This allows you to adjust and rebalance your portfolio. For example, say one asset isn’t performing well or not as expected, you can sell and then reinvest in a more rewarding investment.
Maximize Your Return On Investment
A portfolio allows you to invest in a regular and disciplined manner. The main objective of portfolio management is to maximize your return on investment. One way you can help benefit your earnings it to invest often. If you’re able to set a certain amount of fund aside each month specifically for investing, you’ll be able to grow your portfolio much faster.
Manage Your Liquidity
You’re able to manage your liquidity with a good portfolio management strategy. For example, you may have funds in an investment that you may need in an urgent manner. With the correct portfolio management, you can sell off these assets to ensure you have the funds you need in that emergency.
Let's You Evaluate the Risk/Reward on Investments
One of the great benefits of portfolio management is being able to balance risk and reward for your investments. Not all investments are equal, some are riskier but tend to be more rewarding. Others are more conservative and produce lower returns. By working with a portfolio manager, you’re able to come up with a diversified portfolio that has the correct amount of risk you’re comfortable taking. Making it the right plan for you.
Avoids Financial Disaster
A proper Portfolio Management plan will help you avoid major risks and disasters while being able to maximize your returns. Even if one of your risky investments fails, by diversifying your investments you’re able to avoid financial disasters to your overall portfolio. And by having the structured framework of a portfolio you can maximize your return even with limited funds.
FAQ’s Regarding Portfolio Management
Portfolio Management Services (PMS), service offered by the Portfolio Manager, is an investment portfolio in stocks, fixed income, debt, cash, structured products and other individual securities, managed by a professional money manager that can potentially be tailored to meet specific investment objectives. When you invest in PMS, you own individual securities unlike a mutual fund investor, who owns units of the fund. You have the freedom and flexibility to tailor your portfolio to address personal preferences and financial goals. Although portfolio managers may oversee hundreds of portfolios, your account may be unique.
- Discretionary:
- Under these services, the choice as well as the timings of the investment decisions rest solely with the Portfolio Manager.
- Non Discretionary
- Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the timings of the investment decisions rest solely with the Investor. However the execution of trade is done by the portfolio manager.
- Advisory
- Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the execution of the investment decisions rest solely with the Investor. Note: In India majority of Portfolio Managers offer Discretionary Services.
Apart from cash, the client can also hand over an existing portfolio of stocks, bonds or mutual funds to a Portfolio Manager that could be revamped to suit his profile. However, the Portfolio Manager may at his own sole discretion sell the said existing securities in favor of fresh investments.
FAQ’s Regarding Portfolio Management
Portfolio Management Services (PMS), service offered by the Portfolio Manager, is an investment portfolio in stocks, fixed income, debt, cash, structured products and other individual securities, managed by a professional money manager that can potentially be tailored to meet specific investment objectives. When you invest in PMS, you own individual securities unlike a mutual fund investor, who owns units of the fund. You have the freedom and flexibility to tailor your portfolio to address personal preferences and financial goals. Although portfolio managers may oversee hundreds of portfolios, your account may be unique.
- Discretionary:
- Under these services, the choice as well as the timings of the investment decisions rest solely with the Portfolio Manager.
- Non Discretionary
- Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the timings of the investment decisions rest solely with the Investor. However the execution of trade is done by the portfolio manager.
- Advisory
- Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the execution of the investment decisions rest solely with the Investor. Note: In India majority of Portfolio Managers offer Discretionary Services.
Apart from cash, the client can also hand over an existing portfolio of stocks, bonds or mutual funds to a Portfolio Manager that could be revamped to suit his profile. However, the Portfolio Manager may at his own sole discretion sell the said existing securities in favor of fresh investments.
