Asset Managment Concepts

I believe most clients are best served by a fee based arrangment, where clients investments are charged an annual fee, usually on a quarterly basis, based on the account value. In some circumstances, commission products may be the only kind available to fit the need, or you may feel they are more appropriate for some reason.  A fee based approach lends itself to being able to make changes on an ongoing basis that are more favorable to you without incurring you trading costs.

Fundamentally, I believe in avoiding significant losses in your account over extended periods, which requires more active oversight of your account than the traditional commission based approach allows. I believe that trying to recover significant losses is more difficult than avoiding them in trying to achieve returns. This concept is outlined in the research paper Half & Half: Why Rowing Works. These kinds of objectives are put into an "Investment Policy Statement".

Risk managment is usually addressed by diversification and particularly by the use of Asset Allocation, the allocation of your investments proportionally amongst various asset classes in the attempt to reduce portfolio volatility while pursuing appropriate returns.  There are two basis asset allocation approaches-strategic, or passive- and tactical, or active-asset allocation.  Both approaches may be appropriate under various market conditions at differing times.  Often I employ the use of Third Party Money Managers to assist in the oversight of the asset allocation. I often refer to them as Portfolio Strategists (for insight into some of them see Asset Mananager Commentary Page ) . I have found that the more eyes are watching your investments, and the more good minds are engaged in trying to accomplish your investment objectives, the higher your odds may be of obtaining your goals and achieving your objectives.

Ultimately, I choose to manage assets towards pursuing client goals, discovered in the financial planning process discussed on this web site.  Goals based asset management means we are measuring against goal acheivement, not an index of stocks or bonds.  This concept is handled in detail in "Real Success in Goals-Based Investing."


Investors should be aware that investing based upon strategies or models does not assure a profit or guarantee against loss. Your Financial Representative can provide you with further details concerning the risks, as well as the potential rewards, of using an investment analysis tool. Investors should discuss with their financial representatives limitations of the methodology employed. It is likely that the initial analysis will change over time with respect to the investments used in the analysis.

There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values.