Investment Advisory Process
The Thinagee Investment Advisory Process is a continuous system of evaluating and meeting our clients’ short-term needs and long-term goals.
Client Profiling and Analysis
The first step in developing your investment and retirement plan is to identify your goals, time horizon, risk tolerance and future performance and service expectations. We’ve developed a questionnaire that can be obtained on request, then mailed or faxed-in, discussed over the phone or completed face-to-face with an Investment Adviser.
Develop Target Asset Allocation Strategy
Once we understand your objectives, we employ asset allocation techniques to develop a range of portfolio options and mixes. We believe that risk management and diversification are the keys to building an appropriate portfolio. This can be accomplished with an asset allocation plan, which is simply a model to divide money/assets among equities, bonds, cash and real estate (broadly defined). This approach can help strike a balance between risk and return because it seeks out portfolio diversification – instead of limiting it to a single asset class. Each model is explained so you can clearly understand the differences. Then we can help you refine the model to create a portfolio mix that is right for you.
Existing Portfolio Review
We will diagnose and analyze factors such as mutual fund ownership costs, duplication or concentration of holdings, and market dimensions to which the client is not presently exposed. We will then evaluate where you are today and what you have in place before we move to the next step in the process. We do this by completing a portfolio review or “snapshot”. Using an advanced portfolio management capability that examines an existing portfolio’s asset allocation and other parameters, we can detect any shortcomings, setting the stage for our plan development and future recommendations.
Monitoring and Evaluation
In our ever changing market environment even the most carefully constructed investment or retirement plan is subject to market movements that may cause asset allocation targets to shift from their original positions and result in unintended risk. At the same time, client objectives may shift over time as personal situations change. We address such inevitable change through our process of continuous monitoring and evaluation. Our analysis and alerts-driven monitoring ensures that the portfolios are managed consistently with their stated goals and investment strategies in a proactive and compliant manner.
Portfolio Construction and Security Selection
Portfolio construction is simply the selection of specific investments to fill the proposed classes. Investments available include individual securities (stocks, bonds), mutual funds, exchange-traded funds (ETFs) and other instruments, such as options. We construct our portfolios utilizing a core approach. This approach allows us to tailor our portfolios to client circumstances. We advocate investing in large, lasting and well-managed companies at a discount (Large Cap Value Stocks) as the foundation or core of portfolios. We then add in combinations of other specialty asset classes in an effort to maximize return and minimize portfolio risk.
Typical Fee Schedule
The following is a typical representation of Thinagee’s Investment Advisory Fee Schedule.
1.00% on the appraised value of the first $1,500,000 of assets under management;
0.75% on the appraised value of the next $1,000,000 of assets under management;
0.50% on the appraised value of any additional assets under management.
Fees are annual rates, based on assets under management, and are billed quarterly in arrears. The annual fee is subject to change in compliance with the fee schedule, when assets are added or withdrawn from the client’s portfolio.
Thinagee is not a broker or dealer and, therefore, has none of the conflicts inherent to managing a discretionary portfolio. We act in a fiduciary capacity while advising our clients. Since, our compensation is only through fees paid by our clients, we work in our clients’ best interests and towards their financial goals.
Communication
Portfolio construction is simply the selection of specific investments to fill the proposed classes. Investments available include individual securities (stocks, bonds), mutual funds, exchange-traded funds (ETFs) and other instruments, such as options. We construct our portfolios utilizing a core approach. This approach allows us to tailor our portfolios to client circumstances. We advocate investing in large, lasting and well-managed companies at a discount (Large Cap Value Stocks) as the foundation or core of portfolios. We then add in combinations of other specialty asset classes in an effort to maximize return and minimize portfolio risk.
