INVESTMENT PORTFOLIO MANAGEMENT
Managing Portfolios $1MM and above
Combining financial planning with professional investment management, I take a holistic approach in which each individual client's specific circumstances are considered, and asset allocation portfolios are customized to the client's needs. In other words, developing investment portfolios for my clients involves taking individual objectives, risk tolerance, time horizons, family situations, life-cycles, cash flow needs, retirement plans, tax situations and various financial goals into consideration.
As an independent, fee-only investment manager I'm free to choose the best investment, asset allocation and strategy for each client. I have over a decade of experience in investing and portfolio management. Having weathered the two worst bear-markets since the Great Depression and subsequent volatility in global markets during the last decade, I have gained a disciplined perspective on investment portfolio management. My extensive professional education and experience have provided me with the knowledge and firm hand needed to maintain a long-term view amid short-term turmoil.
Alongside public market investing, alternative investments are explored for "market neutral" investments, for example: private/closely held stock, precious metals, real estate partnerships, individual tax-exempt municipal bonds, master limited partnerships (MLPs), REITs, venture capital, hedge funds, passive income generators such as private business equity, commercial and residential income producing real estate, farmland and more. We will determine the proper mix of investments that is appropriate for your situation and your goals.
Investing in the public markets, I offer six fundamental “Master Portfolios”that provide my clients with broad, diversified exposure to various types of investments, with an emphasis on managing risk (see asset allocation graphic above). These portfolios are constructed of Mutual Funds and ETF’s that are broadly diversified across different types of investments. Together my clients and I periodically rebalance and refine in order to get the right mix for their unique situation, their goals and risk tolerance. Many analysts and economists feel that proper asset allocation 
is the biggest determinant of overall returns.
All investments are painstakingly researched and evaluated for their appropriateness (suitability for a particular client,) asset classes, risk-adjusted performance, tax-efficiency and stewardship. Allocations of my clients' assets are based on qualitative and quantitative analysis. I don't follow fads, I keep my finger on the pulse of global economic trends, geopolitical conditions, investment sectors, various products and opportunities and make my choices accordingly.
Master Portfolios are customized according to client preferences, goals, risk tolerance and time horizon. All components of Master Portfolios are continuously evaluated and updated on a quarterly basis. For some individuals, specialized investment vehicles may be selected for a combination of tax-managed investing, estate planning, business and personal insurance, educational needs, and further diversification .
My clients' portfolios are constantly monitored and rebalanced every six months to keep the portfolio asset allocations in line. Even the most careful investment plan is subject to the natural movements of investments that may cause allocations to drift from original targets and result in unintended risk.
Rebalancing adjusts a portfolio's holdings in order to more closely match the risk/return characteristics of a client’s target portfolio and bring it back in line with the client's Investment Policy Statement. Biannual reviews with clients may also necessitate more drastic portfolio restructuring according to changing needs and investment time horizons. This will ensure that the chosen investment vehicles and strategies always remain consistent with the objectives of my clients’ investment portfolio and the Investment Policy Statement.
INVESTMENT MANAGEMENT FEES
Clients pay an annual fee for investment portfolio management on a quarterly basis. This fee is a percentage of all Assets Under Management (AUM) and most of it may be tax deductible (!) Please see more information under fees. There's a requirement of minimum assets of $1 million.
A NOTE ON INVESTMENT RISKS
Today investors are more sensitive to risk than ever. Yet for many, their long-term investment goals may not be achievable without taking some degree of risk. While one can't completely eliminate risk, investors can choose an investment portfolio manager with the perspective, expertise, and resources to manage risk and navigate today’s increasingly complex global markets and landscape of all kinds of investments.
I take a comprehensive, disciplined approach to investment risk management, seeking to ensure that investment risks are recognized, rational and rewarded.
Contact me today, and let's talk about your portfolio.
Where are client assets held? - at an Independent, Third-Party Custodian
The custodian for Financial Mastery Wealth Management clients is Fidelity Investments one of the world’s largest and strongest financial institutions. Your custodian maintains custody of your investment account. It's a separately managed account with trading authorization. There’s a sense of comfort and transparency. My clients know exactly what I'm doing in the portfolios.
Fidelity’s state-of-the-art execution, settlement, and back office processes provide clients with the best custodial services available. Fidelity Investments is obligated by law to maintain your assets for you and you alone. With Fidelity as your independent custodian, you can be certain that no one – not even your investment advisor – can reach the assets in your investment accounts without permission. An independent custodian company is a separate entity from the investment management company (me.)
What differentiates Financial Mastery Wealth Management from other firms?
I am very professional, but I also take a very personalized position - which makes a big difference. Observing the highest the standards of integrity, and by law held to a fiduciary duty, I'm committed to serving my clients' best interests at heart.
Most large investment management firms have grown so large, that what their clients find missing is the “human factor,” the individual attention that my clients expect and deserve. Other firms often delegate clients and their assets down to the junior staff once the assets have been acquired by the marketing department. They often lump clients into cookie-cutter portfolios that are expected to run on "auto-pilot."
Often these large firm may be more interested in "churn," building assets and earning commissions; I take a more focused, personalized approach. I calibrate each portfolio for each client uniquely based on their goals, preference for risk and time-horizon and tweak it to the most optimized risk-adjusted and tax-efficient portfolio. I monitor and rebalance as needed. I meticulously research and evaluate the kinds of vehicles I invest in for my clients.
Investment portfolio construction is as much art as science. Good investing is about a disciplined approach, mitigating risk while maximizing performance. Investments may go up and down, but a carefully constructed portfolio will provide built-in “shock absorbers” that will produce better long-term returns.
What services can you expect from a Financial Advisor?
A financial advisor should take the time to get to know you, your financial situation, your financial goals and your risk tolerance. When searching for an advisor, you should expect to receive some or all of these services:
- Personal attention - A good advisor will take the time to go through a full interview with you, asking questions to get to know your entire financial situation, your risk tolerance and your goals.
- Help developing an asset allocation strategy - Once you've worked with your advisor to determine your risk tolerance, they can help you determine how to allocate your money based on a mix of asset classes with varying degrees of risk that fit your financial goals, time horizon and comfort level.
- Advice on specific investments that match your goals - When you're comfortable with your financial strategy and determined an appropriate asset allocation, your advisor will then make recommendations on the types of mutual funds, ETFs and alternative investments to have in your portfolio. A good advisor should be able to provide research supporting his or her recommendations.
- Answers to your financial questions - If the markets become volatile, your financial advisor should be available to help you understand the reasons behind the instability. If you hear of an interesting investment opportunity, your advisor has the ability to research and investigate these opportunities and help you decide if they fit into your overall plan. Will your portfolio survive a surprise?
- Proactive management of your account - Your advisor can also bring investment opportunities to your attention, based on detailed knowledge of your financial strategy and goals. Your advisor can help you manage your expectations by explaining the potential rewards and risks of any investment.
- Ongoing, regular check-ups - Your advisor should contact you on a regular basis to see if your financial situation has changed. If you've gotten married, switched jobs, had a child or purchased a home, your financial strategy may need to be adjusted to account for these changes. At least once a year, your advisor should review your account with you and help you make any adjustments necessary to ensure your strategy continues to meet your situation and goals.
One key concept regarding asset allocation is never put so much of one’s portfolio in one investment so that, in the event that investment collapses, a person’s lifestyle is affected.
Asset allocation is one of the most important considerations in investing because the asset allocation of a portfolio determines its risk/return characteristics.
It is important to remember that the asset allocation of a portfolio should be tailored to an individual’s goals, needs, preferences, and individual circumstances. As such, the asset allocation models often seen in financial magazines, while interesting in a general sense, should not be directly applied to individual clients.
The Brinson Study
A major landmark in the debate over how money should be managed— both for institutional and individual accounts—occurred in 1986 with the publication of “Determination of Portfolio Performance” by Brinson, Hood, and Beebower (1986), in which they reported the results of a study of the performance of 91 large pension funds over a 10-year period. Brinson sought to explain the differences between the performance of these funds in terms of their investment practices, which fell into three categories:
- Security selection. Each fund was professionally managed by experienced individuals making individual securities selections.
- Market timing. Each fund moved from equities to bonds, to cash in response to what the managers perceived to be impending changes in market conditions.
- Asset allocation policy (called investment policy in the study.) Each fund had a policy as to the positioning of its assets in terms of the categories of assets in which it would invest, and in terms of the proportions that would be allocated across these categories.
The Brinson study concluded that, on average, 93.6% of the variance between total returns of these large pension funds was attributable to how they allocated their assets. Securities selection and market timing counted for very little.
See this Money magazine graphic on why a lot of people need help with proper asset allocation. It illustrates how - without help - some 401k owners are taking inappropriate risks with their investment choices.
- Chasing "hot" performance
- Trying to time the market
- Emotional, panic selling
- Avoiding the market
- Investing without sufficient research and understanding
- Viewing investing as a "one-time" task
Does your portfolio need professional help?
Managing your portfolio can be a challenge. Often it's a difficult, time-consuming process to keep your assets well diversified, weigh the tax consequences of investment decisions, and respond appropriately during periods of market volatility. I can help. Contact me today and let's talk.
This website is for informational purposes only and is limited to the dissemination of general information on products and services , not for the rendering of personalized investment advice . This material is presented solely for informational purposes and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results. The value of your investments will fluctuate over time and you may gain or lose money. Investment strategies or asset allocations shown may not be suitable for you.
Financial Mastery Wealth Management LLC expressly disclaims all liability in respect to actions taken based on this website. FMWM LLC does not guarantee the accuracy or completeness of the information on this site. The site is not intended to be a substitute for specific individualized tax, legal or investment planning advice. FMWM LLC is a registered investment adviser in the state of California and may only transact business in other states of the USA if first registered, excluded or exempted from state registration requirements (not having more that 5 clients in any one state outside of California.) Please read Terms of Use.
send an email
