Detterbeck Wealth Management will show you how we can take your current portfolio, which may not be performing up to your level of satisfaction, and turn it into something that works for you: an optimized, tax efficient portfolio using sophisticated investment strategies and vehicles.
Identification of Your Goals and Constraints
We do this by identifying your goals, risk tolerance (see Risk Analysis box to the right), return objectives, income needs, time horizon, and other special requirements. As every client is unique, so is each client portfolio.
What's Your Level of Risk Tolerance?
Identification of Your Customized Asset Allocation Mix
We match your characteristics with an asset allocation mix tailored to you. For example:
x% equities, y% fixed income, z% alternatives
Please note DWM’s investment philosophy: A traditional portfolio of stocks and bonds is not the answer alone; they can be great during bull markets, but can be devastating during bear markets. DWM is concerned foremost about portfolio downside. In other words, avoiding significant losses is our top priority. What about a portfolio that can perform in any market environment? The key to doing that is with sophisticated investment vehicles and strategies, not the “set and forget” philosophy. (More on portfolio management below).
Once the asset allocation target has been agreed upon, we then detail the specific investment strategies that we feel are most appropriate for you and explain the rationale behind these recommendations.
Investment Policy Statement (IPS)
Before implementing any changes to your portfolio, an Investment Policy Statement (IPS) is created and signed by all parties that documents the items agreed upon above. It also gives DWM the discretionary authority to trade your accounts in-line with those decisions. It also outlines our responsibility as your adviser to implement these recommendations, constantly monitor your portfolio’s progress, and make the necessary changes to ensure you stay on course.
Investment Management Communication
On a quarterly basis, we will send you a consolidated performance report that evaluates your portfolio against the usual benchmarks (S&P500, etc), including the CPI (inflation index). We encourage meeting with clients at least annually to review your portfolio and discuss how its performance compares to your vision and financial plan. Keep in mind that each client has an encrypted, secure area within our website that can be accessed 24/7. We also have a mobile application where the same information is available via your smartphone or tablet computer.
Portfolio management at DWM follows a Core & Satellite approach which seeks to provide continuous access to sources of higher expected returns with lower risk that adds value over benchmarks and peers, and to participate in good times and to protect in bad times.
Goal of core model: Seeks to provide higher expected returns with lower risk within the traditional equity & fixed income markets in a cost-efficient manner, using low cost, passive investments including, but not limited to, DFA funds.
Goal of satellite model: Seeks to provide higher expected returns via investments that do not correlate with the traditional markets, hence obtaining key multi-asset class, diversification benefits for the overall portfolio. Alternative investments are inherently active.