As a financial advisor and fiduciary, creating a robust portfolio management framework is crucial to meeting your clients’ investment goals and objectives. The portfolio process is a systematic approach to managing investments, and it involves 7 essential steps. In this article, we’ll explore each step in detail, providing a comprehensive guide for financial advisors and fiduciaries.
Step 1: Client Discovery (Understanding Client Goals and Objectives)
- Gathering client information and data
- Identifying investment goals, risk tolerance, and time horizon
- Establishing a client-advisor relationship
Step 2: Investment Policy Statement (IPS) Development
- Creating a customized IPS outlining investment objectives, strategies, and guidelines
- Defining asset allocation and risk management parameters
- Establishing a framework for ongoing portfolio management
Step 3: Asset Allocation and Portfolio Construction
- Allocating assets according to the IPS
- Selecting securities and building a diversified portfolio
- Implementing tax-efficient strategies
Step 4: Portfolio Implementation and Execution
- Executing trades and allocating assets
- Monitoring and adjusting the portfolio as needed
- Ensuring compliance with IPS guidelines
Step 5: Ongoing Portfolio Monitoring and Rebalancing
- Regularly reviewing portfolio performance and risk
- Rebalancing the portfolio to maintain target allocations
- Adjusting the IPS as client circumstances change
Step 6: Performance Measurement and Reporting
- Evaluating portfolio performance against benchmarks and IPS objectives
- Providing regular reporting and client communication
- Identifying areas for improvement
Step 7: Continuous Improvement and Update
- Refining the portfolio process and IPS as needed
- Incorporating new investment strategies and products
- Ensuring ongoing compliance and risk management
Conclusion:
The 7-step portfolio process provides a comprehensive framework for financial advisors and fiduciaries to manage their clients’ investments effectively. By following these steps, you can create a robust portfolio management framework that meets your clients’ investment goals and objectives.
Call to Action: If you’re a financial advisor or fiduciary seeking to enhance your portfolio management skills or an individual looking for personalized investment guidance, consider consulting with a financial expert to determine the best approach for your unique situation.
Global View Capital Management (GVCM) is an affiliate of Global View Capital Advisors (GVCA). GVCM is a SEC Registered Investment Advisory firm headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188-1126. 262.650.1030. Ryan Peca is an Investment Adviser Representative (“Adviser”) with GVCM. Additional information can be found at www.adviserinfo.sec.gov Global View Capital Insurance Services (GVCI) is an affiliate of Global View Capital Advisors (GVCA). GVCI services offered through Experior Financial Group, ASH Brokerage, and/or PKS Financial. GVCI is headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188-1126. 262-650-1030. Ryan Peca is an Insurance Agent of GVCI.
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