Step 1: Analyze Client Goals and Objectives
This is possibly the most important step in the whole process as it forms the foundation on which all other steps are built. It is vital that you give careful consideration to what you hope to gain in return. We discuss the following questions:
What stage of asset growth are you in now - wealth accumulation or distribution?
How much risk of loss & volatility are you willing to assume for a given rate of return?
What is the time frame for reaching your various life goals?
What is your tax situation?
Step 2: Formalize Investment Policy
We spend a considerable amount of time gaining a complete understanding of your answers to the above questions before proceeding to the next stage. We use this information to create a formal investment management policy (“IPS”) that guides all future investment decisions and forms the central repository for all intelligence regarding your investment timeframes, objectives, tax-sensitivities, risk tolerance etc. Back to Chart
Step 3: Design Optimal Portfolio
Once we have formalized your investment policy, it is used as the baseline for design of your portfolio. Asset allocation is responsible for over 90% of a portfolio's performance and is placed at the heart of our portfolio design stage.
Primary Determinants of Portfolio Performance
Utilizing proprietary analytical models,we will produce a number of scenarios
defining a number of different asset blends that can meet the expected rate
of return while maintaining an acceptable level of risk within the portfolio.
We will then work through these scenarios to determine which one best fits
your needs. Back to
Chart
Step 4: Portfolio Implementation
Once your asset allocation is selected, we go through a detailed process to select the best investment managers for each asset class and considering your individual situation. We then evaluate recommend equity and fixed income investments, analyzing characteristics such as past performance, manager and team qualifications and investment philosophy, among other factors. Once the managers have been selected and you have approved the strategy, we will implement the portfolio design.
Under the Integrated Financial Solutions relationship, the set up of your accounts at TD Waterhouse and the transfer of assets from other custodians is handled by Northstar, acting as your agent. Portfolio rebalancing and other implementation activities will require that you give us a Limited Power of Attorney, but we never take full discretion of your accounts. It is important to note that no investment trades will be made without your specific review and approval. Back to Chart
Step 5: Performance Reporting and Measurement
We provide customized reporting allowing you to monitor the performance of your investment portfolio compared to appropriate benchmarks. Investment analysis is reported to you twice a year and more frequently upon request or as part of meetings. You may also ask for online access to your accounts at TD Waterhouse to view activity. Back to Chart
Step 6: Portfolio Monitoring & Rebalancing
Our asset allocation and manager selection processes are dynamic. Although our asset allocation guidelines tend to remain consistent, we review them periodically and will occasionally modify them to reflect fundamental market conditions, or changes in your objectives or circumstances. In addition, we continuously monitor the performance of our selected investments and fund managers, making recommendations to you as necessary.
Throughout our relationship, Northstar maintains a high-level of personal
contact with you. You are always in the process and final decision authority
always remains with you. After all, it is your money! Back
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