Our Process

We place an emphasis on long-term, comprehensive financial planning.

Gather Data

Gather all qualitative and quantitative financial and personal data such as cash flows, brokerage statements, and retirement plan information.

Develop the Plan

Develop the long-term comprehensive plan including a formal investment policy statement (IPS) and strategic asset allocation.

Monitor the Plan

Constantly monitor and review the plan to make sure the client is on track to reach their targeted goals and objectives.

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Discovery phase

Discovery phase where we get to know you and the people who are important in your life. We aim to understand your goals, time horizon, risk tolerance, and need for liquidity.

Analyze Data

Analyze and evaluate all of the data, documents, and financial information through sophisticated financial planning software.

Implement the Plan

Implement the recommendations of the plan by identifying and helping to select specific strategies, solutions, products, and services. In this stage, we will work closely with your other service providers and professionals.

Investment Philosophy

We take a conservative preservation of capital approach to help you live comfortably today and protect your legacy for the future.

“Our view on portfolio construction is driven by an evaluation of the overall client financial picture, which includes both liquid and illiquid asset classes. It is our goal to construct and manage the liquidity and investable asset parts of the portfolio while taking into account a client’s overall financial situation. In this manner, we implement the investable asset allocation in order to protect and grow the total net worth of the client.”
There are four guiding principles that drive our asset allocation decisions and portfolio construction process. We believe adherence to these principles provides our clients with protection and asset growth whether economic growth is faster or slower than expected or whether inflation is higher or lower than forecasted.
  • Create “All Weather” Portfolios: Focus on the protection and the growth of capital in an absolute sense rather than relative to stated benchmarks. We believe portfolios should be constructed in a manner which allows the portfolio to perform in varying economic scenarios. Since no one can perfectly predict future growth or future inflation, you must be positioned for protection and growth regardless.
  • Asset Allocation within the Framework of the Overall Financial Picture: Asset allocation within the investable assets must account for the risk and liquidity aspects of the “non-investable” assets, such as family businesses, direct “personal use” real estate holdings, fine art, and other collectibles.
  • Unbiased Institutionally Researched Managers: Portfolios are constructed, implemented and monitored at the manager and product level. All pieces of the portfolios—from traditional long-only equity managers to emerging private equity offerings— pass through an institutional due diligence process from world class research firms that we selected based on their particular expertise.
  • Implement Efficiently: Portfolios are implemented to deliver efficient and passive low-cost solutions where alpha generation is unlikely, then seeking and implementing the best active managers where generating alpha is possible. Because of our independent advisory structure and our institutional relationships, we have virtually the entire investment universe of managers from which to choose. We add, delete and rebalance among asset classes and managers on a dynamic basis.

Economic ScenarioS

Asset allocation should be should be determined based on the “intentions of” and “objectives for” the pool of assets. The portfolio objectives are expressed through our four economic scenario buckets. They are broadly categorized into: Capital Growth, Real Return, Volatility Management, and Income.

The Capital Growth bucket is designed to contain exposure to global equity investments. Capital Growth investments are expected to be linked to global economic cycles. Investments in this segment will be equity oriented and will include both domestic and international allocations. These investments are expected to have the highest returns coupled with the highest volatility. Furthermore, the Capital Growth segment is also an effective hedge against the ravages of long term inflation.

Allocations in the proposed model portfolios have been constructed to be global in nature and represent a split between domestic and non-US equity, including developed, emerging, and frontier markets countries. A core-satellite manager structure has been utilized whereby low-cost index instruments provide market exposure (beta) and liquidity while specialist and niche managers provide diversification and potential alpha generation. Although an alternative and illiquid asset class, private equity falls within the capital growth bucket.

The Real Return bucket is designed to provide exposure to assets that are expected to preserve purchasing power in inflationary environments. Investments in this segment are constructed to provide some level of positive correlation with broad measures of inflation such as the Consumer Price Index (CPI) while also preserving long term purchasing power by generating positive real returns.

The implementation of this segment begins with a carefully constructed blend of TIPS, Commodities/Managed Futures, Real Estate, and Natural Resource Equities. The Callan R3 (Rebalanced Real Return) strategy we utilize for the core of this portfolio contains a portfolio of liquid ETFs and funds that are aggressively rebalanced to capture the potential return premium offered by blending volatile and uncorrelated assets. As assets allocated to the Real Return bucket increase, so does the complexity of the implementation. Core Private Real Estate, Value Added Real Estate, and Master Limited Partnerships (MLPs) serve to further diversify the implementation and increase the inflation protection aspects provided.

The Volatility Management bucket is designed to dampen overall portfolio volatility and provide exposure to less correlated investment strategies and highly skilled professional investment managers. Volatility management investments are often niche strategies with less equity directionality achieved through aggressive hedging. Access to these less directional and less volatile strategies is taken through Hedge Fund related products.

Implementation vehicles for the Volatility Hedge segment are primarily hedge fund beta ETFs for smaller allocations, and single manager Hedge Funds and Hedge Fund of Funds for larger allocations. Hedge Fund investments include allocations to long/short equity, absolute return, market neutral, global macro, event-driven, and other broadly diversified strategies.

The Income bucket is designed to provide current income to the portfolio and to serve as a volatility dampener. Furthermore, the Income bucket is also an effective hedge against deflationary environments. Income investments should provide current income and reasonable stability of principal. Investments in this segment will be fixed income oriented and will include instruments across the credit quality spectrum and will include both domestic and non-US exposures. The primary drivers of returns for Income investments will include interest rates, credit spreads, and global currency fluctuations.

The manager structure utilized in this segment includes significant exposure to US core fixed income while also providing exposure to diversifying and alpha generating elements including foreign developed and emerging non- dollar bonds and absolute return oriented products.

MANAGER SELECTION

Rose Capital Advisors and Dynasty Financial Partners have carefully selected several of the leading institutional research firms to provide asset allocation advice and manager due diligence and monitoring. Callan Associates provides advice primarily on long-only managers. Wilshire provides advice primarily on hedge fund managers.

Data Collection – quantitative and qualitative

Sifting of managers based on quantitative information such as volatility, correlations, AUM, performance

Manager meetings to assess investment process, personnel, organizational stability

The Manager Search Committee oversee process to ensure appropriate manager selection

Formal written document is prepared detailing overall evaluation

Managers are approved and available for investment. Once Implemented, the systematic monitoring process begins.