ASSET ALLOCATION & DIVERSIFICATION
The process of effective investment management starts by thoroughly evaluating a client’s individual risk and return objectives. Based on this information, an asset allocation strategy is developed and is the foundation of each and every investment decision.
- Investments are diversified among asset classes to effect liquidity, volatility and overall portfolio return.
- Global Asset Management investment advisors use the many tools at their disposal to maximize risk-adjusted rates of return.
- Each individual portfolio is reviewed to ensure that all investments are appropriate for the client’s stated investment objectives and risk tolerances.
Global Asset Management has a global network of relationships with several of the world’s largest financial institutions. This enables us to achieve better trade execution, access to IPOs and secondary offerings, and top tier research. When combined with our own proprietary research, it gives us an edge in evaluating potential investments.
At Global Asset Management , we have established a proprietary modeling strategy to screen the most important factors determining investment performance. The initial step is identifying leading macro-economic trends. Analysts then break things down further focusing on specific market sectors and industries. We consider actions being taken and changes happening within governments of economically influential nations that may affect markets. Finally our research team considers a list of other top-down factors, such as liquidity and currency fluctuations, for example.
This is the stage where a company’s financials are examined with a microscope. Our proprietary quantitative models rank stocks according to multiple parameters to establish their true value, and how that compares to current trading levels. We compare what the value is today, and where we project the value to be at various intervals in the future.
The final step involves Investment Advisors meeting with analysts to determine which of the best rated companies are appropriate for an individual portfolio. Individual investments must fit into the established asset allocation and risk tolerance. The proposed asset selection is run through a final proprietary analysis to determine the relative volatility compared to the broad based market, and final adjustments are made where necessary. All portfolios must accomplish diversification that includes geographic, market capitalization, sector and industry. Only at this final stage is it ready to present to the client for approval.