Portfolio Management is the discipline of professionally managing a client’s assets in coordination with the other components of their Financial Profile in order to generate a consolidated plan.
At CD Wealth Management, we believe that investing is both an art and a science that needs a proper balance in order to meet the individual needs of each client. All of our portfolios are built on the foundation of an asset allocation* methodology in order to create a responsible, well-diversified portfolio. Our portfolios add an overlay process to help uncover any investment opportunities that purely analytical assumptions could overlook. We believe only through this lens can our professionals truly help implement a strategy that aids in meeting the ultimate needs of each of our clients.
Comprehensive Portfolio Summaries
On a daily basis, our investment team downloads every single client transaction for our 400+ clients into our internal accounting database. With this information, our advisors are able to provide detailed summaries of portfolio activity and performance statistics instantly.
The reports are purposefully designed to provide each client with detailed insights into their overall portfolio:
- Graphical Performance Summary shows the overall asset allocation of the entire portfolio;
- Graphical Performance Review provides the statistical returns of the overall portfolio as well as a summary of returns compared to their appropriate benchmarks;
- Performance Summary by Asset Class details the returns of each individual asset class; and
- Holdings Report breaks down the individual investments that comprise the portfolio.
Client’s lives are ever changing, so it is important to make sure the portfolio continues to meet the client’s goals and objectives. Additionally, our portfolios are always shifting due to fluctuations in the markets. In order to maintain our disciplined investment approach, rebalancing** is a necessity for our long-term investment success, which we break down into four distinct components:
- Target Allocations: Components of our portfolios are designed to rebalance based on the weightings of the underlying securities and the drift parameters of their target allocations;
- Systematic Rebalances: The portfolio is comprised of investment vehicles, which rebalance during specific time intervals, such as semi-annually based on the anniversary;
- Special Circumstances: Through our ongoing due diligence process, we are constantly monitoring our portfolios during changing situations, such as a when a manager retires or an investment is closing , and utilize that opportunity to determine the current market cycle; and
- Review Cycle: Our Review Meeting is an integral component of the wealth management process as it provides us with a standardized opportunity to maintain our rebalancing structure.
*Using asset allocation as part of your investment strategy neither assures nor guarantees better performance and cannot protect against loss of principal due to changing market conditions.
**Rebalancing assets can have tax consequences. If you sell assets in a taxable account you may have to pay tax on any gain resulting from the sale. Please consult your tax advisor.