At Blueprint Financial Services we employ time-tested and proven Asset Allocation strategies in a disciplined manner according to the following process.
I. Detailed Understanding / Financial Analysis
The first step of the investment process is to gain a clear understanding of your current financial situation. During this process, a complete Financial Analysis is performed by evaluating the following criteria: financial goals and objectives, time horizon, liquidity needs, tolerance for risk and investable resources.
II. Disciplined Principles / Formalize Investment Policy Statements(IPS)
Upon completion of the financial analysis, we will determine the appropriate amount of risk to be taken in your portfolio and create a personalized Investment Policy Statement(IPS). The purpose of the IPS is to establish a clear understanding between you, the investor, and our firm, the investment advisor, regarding the objectives and guidelines applicable to the portfolio.
The focused principles involved in the creation of the IPS will include:
The establishment of reasonable expectations as to the long-term returns of the portfolio.
An investment structure detailing permitted asset classes, optimal allocations and permissible deviations of exposure for the portfolio.
The framework for a well-diversified asset mix that can be expected to generate long-term returns at a level of risk suitable to the investor.
III. Freedom of Choice / Portfolio Strategist Selection
We refer to the Portfolio Strategist Selection process as your opportunity to capitalize on the numerous strategic alliances that Blueprint Financial Services has developed with the nation's premier institutional consulting firms. The primary goal of these relationships is to assist you in achieving your financial objectives by providing the chance to choose from the premium selection of leading academics in the field of asset allocation.
Strategic Asset Allocation / Passive
Strategic Asset Allocation(SAA) seeks to identify asset classes that maximize returns for a given level of risk. According to your level of risk, an optimal portfolio will be constructed, based upon historical risk/return characteristics. As time passes, the portfolio will be rebalanced periodically to maintain the original desired asset class mix.
Institutional Strategists: Blueprint Financial Services / Wilshire Funds Management / First Affirmative Financial Network
Dynamic Asset Allocation / Active
Dynamic Asset Allocation(DAA) is a more active approach to the asset allocation decision. Like SAA, an optimal portfolio is developed; however, changes are made to the portfolio, based on underlying economic and market conditions. Asset classes are then over-weighted or under-weighted to capitalize on market inefficiencies.
Institutional Strategists: Blueprint Financial Services / Litman/Gregory Investment Strategies, LLC / Iron Point Capital Management / Advanced Asset Management Advisors, Inc.
IV. Comprehensive Exploration / Investment Manager Selection
Our strategists complete an extensive due diligence process to identify high-quality managers to implement their asset allocation decisions. This Investment Manage Selection process goes far beyond solely examining past performance. A variety of factors are examined including: fund return v. benchmark, fund return v. peers, underlying risk, fund expenses.
V. Complete Quality Control / Portfolio Monitoring
We employ an active Portfolio Monitoring process, whereby each of the strategists is observed to ensure that they follow the established parameters, according to your Investment Policy Statement, and adhere to a disciplined investment process, If they begin to deviate, it is our reponsibility to find a suitable replacement.
In addition, it is the responsibility of the strategist to provide ongoing due diligence of the mutual funds and the asset classes inside your portfolio and make changes if necessary. Mutual fund managers will be subject to termination if they fail to achieve stated goals or if they stray from their philosophy or process.
VI. Status Reports / Performance Measurement & Reporting
Often, the uninformed investor will likely be subjected to making harmful short-term emotional decisions, which is why it is vitally important that we keep you informed of your portfolio's progress.
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