We believe that the value an investment advisor adds is directly related to the strength of the relationship with their client. At RiverGlades, we therefore seek to establish mutual trust and understanding before beginning to work together.
Our client relationships begin with a thorough review of your unique situation and goals. We desire to gain a clear, comprehensive understanding of objectives, time horizon, attitude toward risk and any other factors that may enable us to serve you more effectively. This meticulous process also helps us to identify early on whether or not RiverGlades’ approach would be an effective solution for your particular situation.
We believe that investment markets should be used as a tool to diversify risk and provide long-term asset growth. We therefore invest in a manner consistent with this thinking and seek to work with like-minded clients.
Once your long-term goals have been identified, we use portfolio optimization to arrive at a recommended long-term allocation which takes into account the target investment return, client risk profile, and asset classes available to the client. The policy portfolio becomes the baseline around which we implement our tactical portfolio strategy.
We believe that in order to be truly diversified an investor must open their portfolio to include various asset classes, market segments, and geographical exposures. We therefore view our clients’ portfolios as having a global opportunity set and seek to allocate more capital to those investment markets with higher expected returns and less to those with lower expectations.
The tactical strategy is based on our internal research that includes analysis of the global macro-economic outlook, underlying market fundamentals, and a review of current technical indicators for each investment. In doing so, we construct an allocation that tilts the portfolio's positioning around the allocations laid out in the policy portfolio in an effort to increase the expected return while dampening volatility.
We believe investors should to the extent they desire be able to understand the construction of their portfolio and why they own each of the underlying investments. We therefore offer monthly statements, consolidated reporting (including outside assets), and quarterly in-person meetings.
Our investment management is a continual process. The portfolios are monitored on a regular basis and changes are made as necessary. While we aim to keep portfolio turnover low and to invest in a manner consistent with minimizing tax implications, we realize that there are times when it is best to realize a gain or simply cut a loss.