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Financial Planning Process

Step 1: Identifying investor needs and Objectives


IMC advisors analyze investors based on their investment time horizon, liquidity needs, desired rate of return and tolerance for risk. The result is a complete understanding of objectives and investment horizon, an understanding of tax status, an analysis of liquidity and portfolio concentration, determination of any asset class or security preferences, and an analysis of investment attitude and aversion to risk.

Step 2: Determine Asset Allocation Policy

A landmark study published by Brinson, Singer and Beebower in 1991 (and expanded in 1993) determined that portfolio asset allocation is the most important long-term determinant of investment results.

Step 3: Recommend Premier Asset Managers and Implement Portfolio Strategy

Selecting asset managers wisely is critical, but it is the blending of these managers into a portfolio that maximizes return and minimizes risk that is the essence of portfolio management. This is accomplished through a thorough understanding of the unique attributes of each manager. Without this insight, the philosophy of active management is only partly achieved.

We aim to achieve this optimum blend by using our asset allocation blueprint and leveraging the asset managers on our platform. The asset managers in represent portfolio management strategies across asset classes and styles, and have been selected following a rigorous and ongoing due diligence process. With the resources of these Asset Managers available, our advisors work to create a portfolio that creates the appropriate solution as an integrated whole rather than in parts. Managers are selected for the portfolio that blend well together and fit into the determined asset allocation strategy. After we have selected the asset managers for the portfolio, we create a fully customized, comprehensive portfolio.

Step 4: Ongoing Portfolio Management and Monitoring

Once the portfolio strategy has been implemented, we begin a multi-tiered review process to ensure the portfolio continues to meet its objectives. We continually monitor the chosen managers to ensure they adhere to the philosophy and investment style for which they were selected. Ongoing due diligence of the managers in our program ensures consistency and relevance, thus building longer-term client confidence. Our advisors will also monitor portfolios for imbalances that arise as the market shifts to favor a style or asset class. We will rebalance portfolios as necessary to conform to the established asset allocation plan.

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