Chief Investment Office
We’re focused on delivering something remarkably personal: an investment portfolio aligned with your specific goals and unique preferences. Our disciplined approach to money management leverages the insights and experience of specialists across our global firm. All aimed at helping you achieve your individual definition of successful investing.
Managing Your Wealth
Our Chief Investment Office has been entrusted with almost $300 billion of our clients’ wealth. Watch as Chief Investment Officer Richard Madigan discusses our process for investing on your behalf.
Mr. Madigan:
I'm Richard Madigan, the Chief Investment Officer of J.P. Morgan's Private Bank, and I want to share with you today how we manage our clients’ wealth.
We ground our investment philosophy on four anchor pillars. The first, and probably the most important, is being a long-term investor. The trick really to long-term investing is to stay invested. Holding through those cycles over a longer period generates constructive and positive returns.
The second pillar is tactical flexibility, and that's taking a long-term strategic view and then overlaying how to navigate a macro-cycle, a geopolitical headline, and where we see the smartest risk and mix of risk in a portfolio. It's not timing a market; it's navigating an investment cycle, and there's a critical difference between the two.
The third pillar is specialization, and we've made a significant shift on my team, not only in terms of bringing specialists in by asset class, but multi-asset class portfolio managers. I think the industry's getting this wrong in still anchoring around a generalist role. The world's a great deal more complicated. I think the challenge of investing and the opportunities are demanding a degree of specialization we really haven't seen in a generation.
The fourth pillar is an asymmetric approach to risk. And in simple terms, that really means focusing much more on trying to capture more of the upside in a market when it's going up and less of the downside in a market when it's going down. The critical path to doing that is making sure that we're getting the right strategic asset allocation so that diversification can help and play its part. And I think much more importantly, making sure that we compound that difference over the investment horizon of being a long-term investor.
I want to focus on the CIO team. We work with a hundred investment professionals globally. We very much focus on an institutional approach to money management, and we've made a tremendous shift into specialization and specialists. We've added Asset Class Portfolio Managers as the complexity of what happens within a unique asset class becomes so much more important in driving not only the outcome of returns, but how we take risk.
Asset Class Portfolio Managers help me analyze the opportunities within each asset class, so there's a lot of rigor and depth in terms of how we identify opportunities and try to identify things that make the most sense to be in a portfolio and also not to be in a portfolio.
My multi-asset class portfolio management team can help me take each of those individual ideas at an asset class level and determine how it fits into a portfolio, not only in terms of how we right size it but how we actually implement that view.
The other critical piece is focusing on portfolio analytics, portfolio construction, quantitative risk management. That's the anchor or the pillar to everything we do. We're able to size risks and portfolios and actually stress test those portfolios as well.
Another critical team that we work with is our manager selection and due diligence teams. That's crucial because not all investment vehicles are created equally, whether that's an active manager or whether that's a passive strategy. Having a dedicated group of people who can understand not only how those managers generate returns with consistency but also help negotiate the fees that we're paying the least possible with regard to implementation cost, really is something that I'm path dependent on and my team is.
The Managed Solutions part of our business is really focused on innovation, and that involves portfolio specialists that help us drive not only innovation but also, communication. That way my CIO team is focused full-time on managing your money.
END
Side note:
Legal disclosures appear.
Text on screen:
INVESTMENT AND INSURANCE PRODUCTS ARE:
• NOT FDIC INSURED
• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
• NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES
• SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.
Please read important information at the end.
Logo:
J.P. Morgan.
Side note:
Soft background music plays.
Text on screen:
Chief Investment Office: Managing Your Wealth.
On screen:
An executive with short salt-and-pepper hair, Richard Madigan, speaks from a spacious office with wall-sized windows overlooking Manhattan.
Text on screen:
Richard Madigan, Chief Investment Officer, J.P. Morgan Private Bank.
Mr. Madigan:
I'm Richard Madigan, the Chief Investment Officer of J.P. Morgan's Private Bank, and I want to share with you today how we manage our clients’ wealth.
On screen:
A video clip shows Mr. Madigan meeting with his Wealth Management team in a large conference room. Each attendee has documents, charts, and notebooks in front of them.
Mr. Madigan:
We ground our investment philosophy on four anchor pillars. The first, and probably the most important, is being a long-term investor.
Text on screen:
Long-Term Perspective.
Mr. Madigan:
The trick really to long-term investing is to stay invested. Holding through those cycles over a longer period generates constructive and positive returns.
On screen:
A Wealth Management specialist studies financial charts using a mobile device.
Text on screen:
Tactical Flexibility.
Mr. Madigan:
The second pillar is tactical flexibility, and that's taking a long-term strategic view and then overlaying how to navigate a macro-cycle, a geopolitical headline, and where we see the smartest risk and mix of risk in a portfolio.
On screen:
A montage shows the Capitol Building, a cargo ship entering a large port, and an aerial view of an expansive farm.
Mr. Madigan:
It's not timing a market; it's navigating an investment cycle, and there's a critical difference between the two.
Text on screen:
Specialization.
Mr. Madigan:
The third pillar is specialization, and we've made a significant shift on my team, not only in terms of bringing specialists in by asset class, but multi-asset class portfolio managers. I think the industry's getting this wrong in still anchoring around a generalist role. The world's a great deal more complicated. I think the challenge of investing and the opportunities are demanding a degree of specialization we really haven't seen in a generation.
On screen:
A montage shows Investment Managers collaborating and working individually. They look at large digital charts at their workstations. They look at data from Bloomberg Businessweek. They review printed copies of Global Equity Market information and study paper spreadsheets. They also examine multiple computer screens, displaying financial graphs.
Text on screen:
Asymmetric Approach.
Mr. Madigan:
The fourth pillar is an asymmetric approach to risk. And in simple terms, that really means focusing much more on trying to capture more of the upside in a market when it's going up and less of the downside in a market when it's going down.
On screen:
A video clip shows a stock market graph displaying line graphs of various investments.
Mr. Madigan:
The critical path to doing that is making sure that we're getting the right strategic asset allocation so that diversification can help and play its part.
On screen:
A video clip shows Mr. Madigan in his office studying economic reports. Then, a close-up of Mr. Madigan
Mr. Madigan:
And I think much more importantly, making sure that we compound that difference over the investment horizon of being a long-term investor.
Text on screen:
Chief Investment Office: The CIO Team.
Mr. Madigan:
I want to focus on the CIO team. We work with a hundred investment professionals globally. We very much focus on an institutional approach to money management, and we've made a tremendous shift into specialization and specialists.
On screen:
A montage shows Mr. Madigan and his team taking notes and exchanging ideas during a video conference.
Mr. Madigan:
We've added Asset Class Portfolio Managers as the complexity of what happens within a unique asset class becomes so much more important in driving not only the outcome of returns, but how we take risk.
Text on screen:
Asset Class Portfolio Managers.
Mr. Madigan:
Asset Class Portfolio Managers help me analyze the opportunities within each asset class, so there's a lot of rigor and depth in terms of how we identify opportunities and try to identify things that make the most sense to be in a portfolio and also not to be in a portfolio.
Text on screen:
Identify opportunities within asset classes.
Multi-Asset Class Portfolio Managers.
Mr. Madigan:
My multi-asset class portfolio management team can help me take each of those individual ideas at an asset class level and determine how it fits into a portfolio, not only in terms of how we right size it but how we actually implement that view.
Text on screen:
Identify opportunities across asset classes.
Portfolio Construction and Analytics.
On screen:
A multi-asset class portfolio manager looks at multiple computer screens displaying financial data… and a printed report entitled "Sector Allocation Analysis."
Mr. Madigan:
The other critical piece is focusing on portfolio analytics, portfolio construction, quantitative risk management. That's the anchor or the pillar to everything we do. We're able to size risks and portfolios and actually stress test those portfolios as well.
Text on screen:
Construct risk-efficient portfolios.
Manager Selection and Due Diligence.
Mr. Madigan:
Another critical team that we work with is our manager selection and due diligence teams.
On screen:
In a conference room, several business executives exchange ideas at a formal meeting.
Mr. Madigan:
That's crucial because not all investment vehicles are created equally, whether that's an active manager or whether that's a passive strategy.
On screen:
In an office with large windows overlooking a city, three portfolio managers review physical and digital documents.
Text on screen:
Search for and monitor strategies across asset classes.
Mr. Madigan:
Having a dedicated group of people who can understand not only how those managers generate returns with consistency but also help negotiate the fees that we're paying the least possible with regard to implementation cost, really is something that I'm path dependent on and my team is.
Text on screen:
Managed Solutions.
Mr. Madigan:
The Managed Solutions part of our business is really focused on innovation, and that involves portfolio specialists that help us drive not only innovation but also, communication.
On screen:
A diverse group of financial specialists participate in a lively meeting at a spacious office.
Text on screen:
Drive innovation and enhance the client experience.
Mr. Madigan:
That way my CIO team is focused full-time on managing your money.
Side note:
Legal disclosures appear.
Text on screen:
IMPORTANT INFORMATION
Key Risks
This material is for information purposes only, and may inform you of certain products and services offered by J.P. Morgan’s wealth management businesses, part of JPMorgan Chase & Co. (“JPM”). Please read all Important Information.
General Risks & Considerations
Any views, strategies or products discussed in this material may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. Asset allocation/diversification does not guarantee a profit or protect against loss. Nothing in this material should be relied upon in isolation for the purpose of making an investment decision. You are urged to consider carefully whether the services, products, asset classes (e.g., equities, fixed income, alternative investments, commodities, etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated with an investment service, product or strategy prior to making an investment decision. For this and more complete information, including discussion of your goals/situation, contact your J.P. Morgan representative.
Non-Reliance
Certain information contained in this material is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material, which are provided for illustration/reference purposes only. The views, opinions, estimates and strategies expressed in this material constitute our judgment based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in this material in the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of JPM, views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward-looking statements should not be considered as guarantees or predictions of future events.
Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request. J.P. Morgan and its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.
IMPORTANT INFORMATION ABOUT YOUR INVESTMENTS AND POTENTIAL CONFLICTS OF INTEREST
Conflicts of interest will arise whenever JPMorgan Chase Bank, N.A. or any of its affiliates (together, “J.P. Morgan”) have an actual or perceived economic or other incentive in its management of our clients’ portfolios to act in a way that benefits J.P. Morgan. Conflicts will result, for example (to the extent the following activities are permitted in your account): (1) when J.P. Morgan invests in an investment product, such as a mutual fund, structured product, separately managed account or hedge fund issued or managed by JPMorgan Chase Bank, N.A. or an affiliate, such as J.P. Morgan Investment Management Inc.; (2) when a J.P. Morgan entity obtains services, including trade execution and trade clearing, from an affiliate; (3) when J.P. Morgan receives payment as a result of purchasing an investment product for a client’s account; or (4) when J.P. Morgan receives payment for providing services (including shareholder servicing, recordkeeping or custody) with respect to investment products purchased for a client’s portfolio. Other conflicts will result because of relationships that J.P. Morgan has with other clients or when J.P. Morgan acts for its own account.
Investment strategies are selected from both J.P. Morgan and third-party asset managers and are subject to a review process by our manager research teams. From this pool of strategies, our portfolio construction teams select those strategies we believe fit our asset allocation goals and forward-looking views in order to meet the portfolio’s investment objective.
As a general matter, we prefer J.P. Morgan managed strategies. We expect the proportion of J.P. Morgan managed strategies will be high (in fact, up to 100 percent) in strategies such as, for example, cash and high-quality fixed income, subject to applicable law and any account-specific considerations.
While our internally managed strategies generally align well with our forward-looking views, and we are familiar with the investment processes as well as the risk and compliance philosophy of the firm, it is important to note that J.P. Morgan receives more overall fees when internally managed strategies are included. We offer the option of choosing to exclude J.P. Morgan managed strategies (other than cash and liquidity products) in certain portfolios.
The Six Circles Funds are U.S.-registered mutual funds managed by J.P. Morgan and sub-advised by third parties. Although considered internally managed strategies, JPMC does not retain a fee for fund management or other fund services.
Legal Entity, Brand & Regulatory Information
In the United States, bank deposit accounts and related services, such as checking, savings and bank lending, are offered by JPMorgan Chase Bank, N.A. Member FDIC.
JPMorgan Chase Bank, N.A. and its affiliates (collectively “JPMCB”) offer investment products, which may include bank-managed investment accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC (“JPMS”), a member of FINRA and SIPC. JPMCB and JPMS are affiliated companies under the common control of JPM. Products not available in all states.
In Luxembourg, this material is issued by J.P. Morgan Bank Luxembourg S.A. (JPMBL), with registered office at European Bank and Business Centre, 6 route de Treves, L-2633, Senningerberg, Luxembourg. R.C.S Luxembourg B10.958. Authorized and regulated by Commission de Surveillance du Secteur Financier (CSSF) and jointly supervised by the European Central Bank (ECB) and the CSSF. J.P. Morgan Bank Luxembourg S.A. is authorized as a credit institution in accordance with the Law of 5th April 1993. In the United Kingdom, this material is issued by J.P. Morgan Bank Luxembourg S.A., London Branch. Prior to Brexit (Brexit meaning that the United Kingdom leaves the European Union under Article 50 of the Treaty on European Union, or, if later, loses its ability to passport financial services between the United Kingdom and the remainder of the EEA), J.P. Morgan Bank Luxembourg S.A., London Branch is subject to limited regulation by the Financial Conduct Authority and the Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct Authority and the Prudential Regulation Authority are available from us on request. In the event of Brexit, in the United Kingdom, J.P. Morgan Bank Luxembourg S.A., London Branch is authorized by the Prudential Regulation Authority, subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. In Spain, this material is distributed by J.P. Morgan Bank Luxembourg S.A., Sucursal en España, with registered office at Paseo de la Castellana, 31, 28046 Madrid, Spain. J.P. Morgan Bank Luxembourg S.A., Sucursal en España is registered under number 1516 within the administrative registry of the Bank of Spain and supervised by the Spanish Securities Market Commission (CNMV). In Germany, this material is distributed by J.P. Morgan Bank Luxembourg S.A., Frankfurt Branch, registered office at Taunustor 1 (TaunusTurm), 60310 Frankfurt, Germany, jointly supervised by the Commission de Surveillance du Secteur Financier (CSSF) and the European Central Bank (ECB), and in certain areas also supervised by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). In Italy, this material is distributed by J.P. Morgan Bank Luxembourg S.A., Milan Branch, registered office at Via Catena Adalberto 4, Milan 20121, Italy and regulated by Bank of Italy and the Commissione Nazionale per le Società e la Borsa (CONSOB). In the Netherlands, this material is distributed by J.P. Morgan Bank Luxembourg S.A., Amsterdam Branch, with registered office at World Trade Centre, Tower B, Strawinskylaan 1135, 1077 XX, Amsterdam, The Netherlands. J.P. Morgan Bank Luxembourg S.A., Amsterdam Branch is authorized and regulated by the Commission de Surveillance du Secteur Financier (CSSF) and jointly supervised by the European Central Bank (ECB) and the CSSF in Luxembourg; J.P. Morgan Bank Luxembourg S.A., Amsterdam Branch is also authorized and supervised by De Nederlandsche Bank (DNB) and the Autoriteit Financiële Markten (AFM) in the Netherlands. Registered with the Kamer van Koophandel as a branch of J.P. Morgan Bank Luxembourg S.A. under registration number 71651845. In Denmark, this material is distributed by J.P. Morgan Bank Luxembourg, Copenhagen Br, filial af J.P. Morgan Bank Luxembourg S.A. with registered office at Kalvebod Brygge 39-41, 1560 København V, Denmark. J.P. Morgan Bank Luxembourg, Copenhagen Br, filial af J.P. Morgan Bank Luxembourg S.A. is authorized and regulated by Commission de Surveillance du Secteur Financier (CSSF) and jointly supervised by the European Central Bank (ECB) and the CSSF. J.P. Morgan Bank Luxembourg, Copenhagen Br, filial af J.P. Morgan Bank Luxembourg S.A. is also subject to the supervision of Finanstilsynet (Danish FSA) and registered with Finanstilsynet as a branch of J.P. Morgan Bank Luxembourg S.A. under code 29009. In Sweden, this material is distributed by J.P. Morgan Bank Luxembourg S.A., Stockholm Bankfilial, with registered office at Hamngatan 15, Stockholm, 11147, Sweden. J.P. Morgan Bank Luxembourg S.A., Stockholm Bankfilial is authorized and regulated by Commission de Surveillance du Secteur Financier (CSSF) and jointly supervised by the European Central Bank (ECB) and the CSSF. J.P. Morgan Bank Luxembourg S.A., Stockholm Bankfilial is also subject to the supervision of Finansinspektionen (Swedish FSA). Registered with Finansinspektionen as a branch of J.P. Morgan Bank Luxembourg S.A. In France, this material is distributed by JPMorgan Chase Bank, N.A. (“JPMCB”), Paris branch, which is regulated by the French banking authorities Autorité de Contrôle Prudentiel et de Résolution and Autorité des Marchés Financiers. In Switzerland, this material is distributed by J.P. Morgan (Suisse) SA, which is regulated in Switzerland by the Swiss Financial Market Supervisory Authority (FINMA).
In Hong Kong, this material is distributed by JPMCB, Hong Kong branch. JPMCB, Hong Kong branch is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong. In Hong Kong, we will cease to use your personal data for our marketing purposes without charge if you so request. In Singapore, this material is distributed by JPMCB, Singapore branch. JPMCB, Singapore branch is regulated by the Monetary Authority of Singapore. Dealing and advisory services and discretionary investment management services are provided to you by JPMCB, Hong Kong/Singapore branch (as notified to you). Banking and custody services are provided to you by JPMCB Singapore Branch. The contents of this document have not been reviewed by any regulatory authority in Hong Kong, Singapore or any other jurisdictions. You are advised to exercise caution in relation to this document. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. For materials which constitute product advertisement under the Securities and Futures Act and the Financial Advisers Act, this advertisement has not been reviewed by the Monetary Authority of Singapore. JPMorgan Chase Bank, N.A. is a national banking association chartered under the laws of the United States, and as a body corporate, its shareholder’s liability is limited.
With respect to countries in Latin America, the distribution of this material may be restricted in certain jurisdictions. We may offer and/or sell to you securities or other financial instruments which may not be registered under, and are not the subject of a public offering under, the securities or other financial regulatory laws of your home country. Such securities or instruments are offered and/or sold to you on a private basis only. Any communication by us to you regarding such securities or instruments, including without limitation the delivery of a prospectus, term sheet or other offering document, is not intended by us as an offer to sell or a solicitation of an offer to buy any securities or instruments in any jurisdiction in which such an offer or a solicitation is unlawful. Furthermore, such securities or instruments may be subject to certain regulatory and/or contractual restrictions on subsequent transfer by you, and you are solely responsible for ascertaining and complying with such restrictions. To the extent this content makes reference to a fund, the Fund may not be publicly offered in any Latin American country, without previous registration of such fund’s securities in compliance with the laws of the corresponding jurisdiction. Public offering of any security, including the shares of the Fund, without previous registration at Brazilian Securities and Exchange Commission—CVM is completely prohibited. Some products or services contained in the materials might not be currently provided by the Brazilian and Mexican platforms.
JPMorgan Chase Bank, N.A. (JPMCBNA) (ABN 43 074 112 011/AFS Licence No: 238367) is regulated by the Australian Securities and Investment Commission and the Australian Prudential Regulation Authority. Material provided by JPMCBNA in Australia is to “wholesale clients” only. For the purposes of this paragraph the term “wholesale client” has the meaning given in section 761G of the Corporations Act 2001 (Cth). Please inform us if you are not a Wholesale Client now or if you cease to be a Wholesale Client at any time in the future.
JPMS is a registered foreign company (overseas) (ARBN 109293610) incorporated in Delaware, U.S.A. Under Australian financial services licensing requirements, carrying on a financial services business in Australia requires a financial service provider, such as J.P. Morgan Securities LLC (JPMS), to hold an Australian Financial Services Licence (AFSL), unless an exemption applies. JPMS is exempt from the requirement to hold an AFSL under the Corporations Act 2001 (Cth) (Act) in respect of financial services it provides to you, and is regulated by the SEC, FINRA and CFTC under U.S. laws, which differ from Australian laws. Material provided by JPMS in Australia is to “wholesale clients” only. The information provided in this material is not intended to be, and must not be, distributed or passed on, directly or indirectly, to any other class of persons in Australia. For the purposes of this paragraph the term “wholesale client” has the meaning given in section 761G of the Act. Please inform us immediately if you are not a Wholesale Client now or if you cease to be a Wholesale Client at any time in the future.
This material has not been prepared specifically for Australian investors. It:
- May contain references to dollar amounts which are not Australian dollars;
- May contain financial information which is not prepared in accordance with Australian law or practices;
- May not address risks associated with investment in foreign currency denominated investments; and
- Does not address Australian tax issues.
References to “J.P. Morgan” are to JPM, its subsidiaries and affiliates worldwide. “J.P. Morgan Private Bank” is the brand name for the private banking business conducted by JPM. This material is intended for your personal use and should not be circulated to or used by any other person, or duplicated for non-personal use, without our permission. If you have any questions or no longer wish to receive these communications, please contact your J.P. Morgan representative.
Copyright 2020 JPMorgan Chase & Co. All rights reserved.
END
Our management style
Grounded in four pillars, it guides the design of our team and our investment process
This table describes the four pillars of the J.P. Morgan Private Bank investment management style. They are: long-term investing, tactical flexibility, specialization, and an asymmetric approach to risk.
Meet the team
Led by Chief Investment Officer Richard Madigan, our team consists of specialists that work together to enhance a portfolio’s risk and return potential.
This pie chart categorizes the five elements of the portfolio construction and management process. They are: portfolio construction and analytics (where risks are evaluated and portfolios are stress tested); asset class portfolio managers (they focus within their asset classes to identify opportunities); multi-asset class portfolio managers (they identify and analyze opportunities across asset classes); managed solutions (driving innovation to enhance our clients’ experiences); and manager selection and due diligence (to identify and monitor active and passive vehicles to implement our views).
Identifying your goals and preferences
Our disciplined investment approach is anchored in your goals. We consider your return expectations, tolerance or appetite for risk, time horizon, liquidity needs and other factors specific to you to create your personalized portfolio.
Laying the foundation
Your portfolio’s strategic asset allocation is the “North Star” for your return expectations and risk tolerance. We believe a well-diversified portfolio built for the long term starts with three key building blocks:
This table defines the three key ingredients of the portfolio-building process. They are: growth, stability and diversification. Equities offer growth and bring higher volatility. Cash and high-quality bonds provide income and stability, and come with a lower expected return. Alternatives bring an additional element of diversification and have varying degrees of liquidity.
Layering on tactical flexibility
Our Chief Investment Officer and his team continually assess the market environment for tactical opportunities. These opportunities are meant to enhance the return, risk or diversification of the overall portfolio.
Our specialists assess opportunities and dislocations within and across asset classes before making any recommendations. They evaluate the recommendations’ expected contribution to the portfolio under various economic conditions. Next, they propose the vehicle best-suited for the investment. While vetted vigorously across the entire team, the final decision for all transactions lies with our Chief Investment Officer.
This pie chart divides a hypothetical portfolio into its component asset classes, adhering to the principles of growth, stability and diversification. Growth is achieved by investments in U.S. equities, Europe equities, emerging market equities, Japan equities and Pacific equities. Stability is represented through core bonds, high yield/extended credit bonds, and inflation-linked bonds. Enhanced diversification is provided by investments in hedge funds and liquid alternatives, which include equity long-short, event-driven, relative value and macro strategies.
Asking (and answering) the right questions
Designing the right portfolio for you begins with a thorough understanding of your financial objectives as well as your desire and comfort for taking risk. Your portfolio will incorporate your preferences, coupled with our guidance.
We work with you to create a portfolio based on four investment decisions:
This graphic represents the four investment decisions central to a customized portfolio. They are: performance benchmark, geographic focus, implementation preference, and inclusion of alternatives.
Performance benchmark: How will we measure performance? Is the goal to outperform the market? Or are consistency and stability more of a priority?
Geography: Based on your preferences, does it make the most sense to invest in your home market or globally?
Implementation: What investment vehicles align with your goals and preferences? Active managers or passive investments? Or both?
Alternatives: Hedge funds and more liquid alternatives may enhance the diversification of your portfolio – are you in?
The final result
The right portfolio has a level of risk that feels manageable to you, giving you the confidence to always stay invested, even during drawdowns. That is critical to creating and preserving wealth over the long term.
