How We Manage Money
The first—and most important—step in our investment process is to develop a full understanding of your financial needs and goals. Before we invest a dime of your money, your personal account manager will work with you to understand your total financial situation—as well as your passions, values and aspirations.
He or she will help you develop or refine your personal investment objectives and goals, while assessing your tolerance for risk—and in conjunction with our Portfolio Review Committee, examine and evaluate your current investments and tax situation. Only then will we begin to formulate an investment strategy for you.
To make sure that strategy stays consistent with your needs, your portfolio executive will stay in close touch with you so that any changes in your circumstances are promptly reflected in the management of your account. Although Adviser has discretionary trading authority on your account, you will always be made aware of activity in your account through trade confirmations and statements, as well as quarterly reports.
Once we understand your needs, the next step in the process of building your portfolio is to determine your ideal asset allocation.
Investing your hard-earned dollars requires a vigorous process along with a steady hand on the tiller.
We engage in qualitative research—reaching out to fund managers, economists and other opinion leaders to create our own investment thesis. While our client portfolios are always well diversified, we do anticipate trends and make adjustments to our asset allocation accordingly.
After determining your ideal asset allocation, we then select individual funds for each asset class.
At Adviser Investments, we Buy the Manager, Not the Fund™.
We believe in our ability to select managers who are able to outperform their peers consistently over time. There’s no secret to how we do it. Not only do we work harder, we try to work smarter.
Like you, when we select funds, we need to find fund managers that we believe are honest, competent and have a process we believe will add value. The best way to do this is to meet with the portfolio managers we invest with directly, and everyone on the research staff gets involved.
We also do a great deal of quantitative work—much of it proprietary. There are two fundamental ways of conducting this sort of analysis—and we do both. First, we can examine the portfolio holdings themselves and how they evolve. Then we also perform returns-based analysis, which involves comparing daily return data against appropriate benchmarks using regression analysis. While this sophisticated—and expensive—form of analysis isn’t perfect, it usually does provide clues into how a fund manager is altering his or her market exposures and risk characteristics—well before it shows up in published data.