A successful investment plan requires a complete and well-balanced process. The table below summarizes Logia’s 10-step process to ensure our client portfolios are aligned to meet their unique objectives. Every step is important to developing an optimal solution, and delivering the outcomes our clients are seeking.
Portfolio Management Process Steps
Understand client’s specific needs, such as cash flow requirements, unique restrictions or preferences, tax implications, and other outside assets so portfolio is properly positioned.
Assessment of client’s risk capacity and risk tolerance, to establish the basis for an appropriate asset allocation mix and sufficient liquidity in the portfolio.
The key determinant of risk and return potential for the portfolio. Models are based on forward-looking capital market assumptions and offer an array of options to match the client’s objectives.
Choice of the appropriate combination of mutual funds, exchange traded funds (ETFs), separately managed accounts (SMA), and models-based management to design a cost-effective and customized portfolio solution.
Broad menu of active managers are evaluated objectively for security selection skill, with passive managers favored in assets classes where performance of active management is unlikely to justify the cost.
Regularly monitor deviation from client’s target allocation caused by market movements or cash flows, and determine the most cost-effective trades to rebalance the portfolio back to an acceptable level of risk.
Multiple strategies are used to reduce cost including: tax loss harvesting, tax-optimized trades when needed for distributions or rebalancing, and locating assets in the most tax-efficient accounts.
Multi-level reporting to provide household, account, and investment sleeve information and analysis.
Regular client meetings are important to review progress toward outcomes, as well as address changing circumstances that require adjustments to the portfolio.
Client records and requests are managed to ensure that the portfolio remains appropriately aligned to the client objectives, and any cash flows, and all reporting is handled properly.