Subjective risk questionnaires nearly always miss the mark. That’s because the old way of assessing risk, stereotyping investors with subjective semantics, simply doesn’t work. Modern Wealth’s approach uses the risk number. It’s built upon a Nobel Prize-winning framework, and everyone has one. We combine our depth of investment knowledge, investment philosophy, and cutting-edge technology in order to empower our clients to invest fearlessly.
We take a quantitative approach to pinpointing your risk number by going through a series of objective exercises based on actual dollar amounts. If you’ve already got an investment portfolio, we can quickly import it and see if your risk number aligns with your current amount of Risk. We’ll use all these factors to build an optimized portfolio that fits your risk tolerance and goals, giving you the best chance for success.
We will also stress test your portfolio against specific market conditions, illustrate various scenarios, discuss your 95% probability range, and set expectations for what is normal behavior for your investments. We will also chart a path to retirement using a simple, intuitive approach and visualize the probability of a successful retirement and adjust in realtime. Together we can take the guesswork out of your financial future.
Concentrating in one stock exposes clients to unnecessary risks. Diversification reduces the impact of any one company’s performance on our clients wealth. Research shows there is no reliable way to predict top performers. Broad diversification helps reduce unnecessary idiosyncratic risk.
A well-diversified portfolio can provide the opportunity for a more stable outcome than a single security. Nobody knows which markets will outperform from year to year. By holding a globally diversified portfolio, we are positioned to capture returns wherever they occur.
We use interactive historical and statistical data related to your portfolio and compare it with just about anything – market indexes, models, blended benchmarks, and individual securities. We then check on the diversification of a particular fund or account with correlation, diversified risk, and 95% historical capture analytics.
Next, we take a close look into a portfolio’s exposure to equity and bond sectors, and a fund’s regional exposure. You can feel confident knowing what’s under the hood of your investments.
We also use risk and reward scatterplot, which paints the picture of risk efficiency by comparing your portfolio to common benchmarks and indexes, shift between multiple time frames, and delve into the top 10 portfolio holdings.
It’s also important to visualize data from both sides. We toggle between “size” and “style” to see the breakdown between small, mid, and large cap or value, blend, and growth / value funds within a portfolio.
Ever wish you could make changes to your portfolio and immediately see the impact? From minor tweaks to major alterations, we give you the ability to test potential changes in a portfolio and immediately see the impact before implementing a strategy.
When people follow their natural instincts, they tend to apply faulty reasoning to investing. Often, investors may struggle to separate their emotions from their investment decisions. Following a reactive cycle of excessive optimism and fear may lead to poor decisions at the worst times. Missing only a few days of strong market returns can drastically impact your overall performance.
Our disciplined approach looks beyond the concerns of today to the long-term growth potential of markets. We offer expertise and guidance to help our clients focus on actions that add value. This can lead to a better investment experience.
It’s important that a portfolio reflects your risk tolerance, goals, and time horizon. In addition to that, our custom strategies are aligned with your unique values and circumstances. They include:
CORE / SATELLITE
Strategies in this mandate are the central investments of a long-term portfolio. When building your portfolio, it’s essential that the core holdings have a history of reliable service and consistent returns. Secondary investments in this strategy are called satellite or non-core holdings. They focus on growth / value stocks or specific sectors of the market that are poised to outperform.
This strategy invests mainly in companies of any size with significant growth potential. A substantial percentage assets are in its top 10 holdings, which may or may not use leverage.
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) / SOCIALLY RESPONSIBLE INVESTING (SRI)
Our ESG and SRI portfolios strategies are an approach to investing that reduce exposure to companies that are deemed to have a negative social impact and have a positive environmental, social and governance characteristics.
Our Tax Sensitive portfolio strategies are designed for people whose key objective is to manage tax-liability. These strategies offer a strategically tax-efficient management approach in a broadly diversified portfolio.
Alternative investments are a financial asset that does not fall into one of the conventional investment categories and can have low correlation to traditional asset classes. Alternative investments may include private equity, private credit, venture capital, hedge funds, real estate, managed futures, art and antiques, commodities, and derivatives contracts.