Our prudent investment process goes far beyond allocating assets across a broad array of asset classes using different investment vehicles.

We take a holistic balance sheet approach that includes clients’ illiquid assets, both tangible and intangible, as well as business ventures and portfolio companies.  We layer on an extremely disciplined risk management methodology to ensure our clients’ objectives are being prudently addressed.

Information gathering is one of the most critical steps in the overall portfolio construction and implementation process.  It provides the necessary framework around which we craft our investment solution, determine the best course of action required to install an effective financial and estate plan.  Most importantly, “knowing our client” is the foundation for our fiduciary responsibilities.  This process includes:
Obtaining and analyzing documentation supporting development of proper wealth management and financial planning, including:

  • Estate & Charitable Planning documents
  • Tax Returns
  • Pre/Post nuptials and divorce settlement agreements (if applicable)
  • Brokerage Statements & Complete Inventory of client assets
  • Subscription, PPMs and other investment-related documents
  • Any other supporting documentation
  • Obtaining a thorough understanding of the goals for personal lifestyles, business and other interests, objectives, & total benefits wealth should and is expected to provide, for the client.
  • Communicating and coordinating efforts with all advisors and service providers such as attorneys, accountants, consultants and other advisors.
  • Aggregating, inventorying, and storing important in a central depository for safety, security and ease of availability.
  • Reviewing existing titling conventions/ownership structures and assessing the impact they have on goals and objectives.
  • Define Family dynamics, including investment goals and objectives, carefully documented and memorialized in comprehensive Investment Policy Statement.
  • This assessment establishes a client’s need for preservation of capital, appetite for growth, acceptable and predetermined level of risk, as well as provisions for liquidity.
  • We integrate our tax, estate/gift, and charitable planning initiatives as well as other factors that may affect the overall investment process and portfolio.
  • Customized asset allocation model that integrates clients objectives, preferences and other factors.
  • We invest globally with broad mandates and in a diversified manner, knowing very well that some asset classes perform better than others under different economic and capital market conditions.
  • TwinFocus utilizes a broad mix of both active and passive strategies, with an exhaustive and continuous due diligence process that focuses on our forward looking macroeconomic outlook to identify best-of-breed managers.  
  • Our implementation process adds on another layer of client protections to ensure asset location and tax efficiency, where prudent, and best efforts execution to control market impact and other costs and expenses.

fo-investment-process

  • Exhaustive fundamental top-down research on global macro trends and continuous assessment of capital market conditions
  • Identification of opportunities, dislocations and anomalies between the fundamentals in the global economy and capital markets;
  • Determining the optimal strategic/tactical  asset allocation mix for each client under different market environments – i.e., what are the appropriate products, in what proportions, and at what points in time;
  • Due diligence encompassing themes/biases generation through analysis of demographics and geopolitical/geo-economic considerations
  • Our Strategic and Tactical Asset Allocation decisions and the system used to arrive at those decisions is at the heart of the TwinFocus risk management system to ensure prudent levels of risk are taken that provide for commensurate levels of compensation
  • Risk budgeting at the portfolio and strategy levels based on client suitability clearly spelled out in Investment Policy Statement
  • Systematic monitoring of aggregate portfolio positioning to ensure proper alignment of Investment Policy parameters/constraints
  • Rebalancing based on market fluctuations, tactical exploitation of short-term market conditions and deviations or changing client needs, circumstances, and objectives
  • Customized Family Reporting architecture based on individual client preferences using both internal and external performance measures
  • Three major areas of focus that require continuous monitoring and diligence include changing global macroeconomics and capital markets, client circumstances that impact objectives and goals, and manager/strategy performance
  • Continuous monitoring of managers/strategies to ensure goals are met, value is created, and our expectations are being met without undertaking of excessive risks or swaying from investment objectives
  • Periodic meetings with Clients and client service providers to gather and receive information on client circumstances that would warrant changes to portfolios, overall planning or Investment Policy re-assessment
  • Before any major portfolio changes are adopted, we closely consider a client’s specific circumstances, including liquidity needs, tax situation, family and estate planning issues, and overall objectives.  We conduct periodic and ad hoc meetings and conference calls to inform and update client