The Investment Consulting Process
1. Survey and determine portfolio goals and objectives
- Identify Investment amount and liquidity requirements
- Determine investment objective, maximum risk tolerance and time horizon
- Consider tax situation
- Illustrate risky vs. non-risky asset mix
- Establish and blend a broad-market benchmark (i.e. S&P/BarCap etc…)
2. Design a portfolio model (FolioModel) and validate its potential to produce targeted results
- Determine best composition of various markets, asset classes, sectors and industries
- Structural balance of core and tactical portfolio components
- Maximize diversification of individual holdings
- Back test across markets periods and conditions
- Identify best execution methods based on investment amount (i.e. FMX Mutual Funds for accounts 250k and under)
3. Construct an investment portfolio to match its FolioModel benchmark
- Establish a method for best execution
- Open and fund the investment account
- Select individual investments to replicate the FolioModel holdings
4. Monitor and adjust the investment portfolio to track the FolioModel benchmark
- Watch and compare results daily
- Review and conduct in-depth analysis monthly
- Identify opportunities to increase performance
- Substitute underperforming assets and make new selections according to changes within the FolioModel