V.Investment Advice

The Portfolio Management Process

The portfolio management process involves the following steps:

  1. Identifying and clarifying goals for a given investment portfolio. This includes a discussion regarding income requirements and need for liquidity.
  2. Determining an investment time horizon.
  3. Allocation by asset class, including stocks, bonds, cash, and other alternatives.
  4. Diversification by style, such as growth vs. value or government vs. corporate.
  5. Selection of individual securities and funds.
  6. Monitoring portfolio diversification and asset allocation during regularly scheduled review times.
  7. Rebalancing the portfolio to maintain diversification and asset allocation objectives during regularly scheduled reviews.
  8. Reporting results to the client.


Most financial institutions provide a detailed quarterly report and investment summary. Our clients receive comprehensive quarterly reports and an annual summary that tracks unrealized gains and losses; cost basis; interest dividends; and realized capital gains. In many cases we can offer secure Internet access to clients’ investment portfolios and daily values. Additionally, clients integrated with our eMoney wealth management system have 24-hour access to their financial information.

While diversification through an asset allocation strategy is a useful technique that can help to reduce overall portfolio risk and volatility, there is no certainty or assurance that a diversified portfolio will enhance overall return or outperform one that is not diversified.