The process of Benchmarking involves establishing the proper global allocation and official benchmarks to use in order to track risk performance. A starting point used is based on normally acceptable indices from four main investment objectives as previously described and the information is applied to building portfolios from the menu of investments created. Over the course of a market cycle (generally 5 years), certain tactical and cyclical investment decisions may be made that may cause certain market sectors to be under- or overweighed. The risk versus return of the decisions is monitored on an ongoing basis. Since we believe the best returns are achieved over time in accounts that remain fully invested, market timing techniques generally will not be employed. The goal of risk management within the portfolios is not to eliminate risk altogether but to help ensure that risk is intended and compensated. Positions may be increased or reduced as price, performance and market conditions warrant. Clients should keep in mind, however, that historically short-term results have been a less reliable indicator of management performance than compounded returns generated over longer periods of time. With this in mind, performance is tracked for every account and every investment held within our menu on a regular basis. Investment performances will be reviewed at least annually to determine continued feasibility of achieving the client’s investment objectives as well as the appropriateness of the Investment Philosophy Statement for achieving those objectives.
A daily cash total for all accounts under our discretion is reviewed regularly in order to map up benchmark and outlook objectives to the client investment objective risk level. Construction for client accounts occurs once the assets are under our care and the time frame for completion will vary from immediate to a number of weeks and is dictated by the current macro outlook that we maintain.