New or prospective clients often inquire about our investment management philosophy or approach. With decades of advisory experience working with investors and analyzing the markets, we have refined our core methodology into three fundamental pillars: intellect, design, and execution.
Intellect, design, and execution build the foundation for our strategic and detailed approach to managing client portfolios.
MA Private Wealth COO Erica Arroyo explains our investment approach and how we manage our clients’ money.
Intellect
Our investment team partners with the best in class, largest global manager to provide institutional intellect. What do we mean by institutional intellect? It is the combined expertise and experience of over 18,000 financial experts, including portfolio managers, equity analysts, and credit analysts. They span the globe providing real time economic data to inform investment decisions, much of which may not be accessible to individual investors.
When it comes to analyzing and customizing our investment models, we start here first, leveraging their research. This is important for our clients because the quality and intellect behind our investment strategy is absolutely critical to reaching their financial goals.
Design
Leveraging our partnership with institutional intellect, we customize our investment models factoring in such things as quality, risk profile, flexibility, and cost.
Quality
We only select ETFs that exhibit strong fundamental characteristics such as level of assets, trading activity, and underlying index.
Risk Profile
Models are designed across six risk profiles. We utilize Aladdin risk management technology to analyze investment risk factors and stress test portfolios which helps in building resilient models, especially during times of volatility and market turbulence.
Flexibility
We consider each investment vehicle’s flexibility in designing our models. Flexibility includes how often an investor can invest in a fund and the transferability of assets.
Cost
As fiduciaries, we research the internal fees of investment vehicles as we make our fund selection. We are fee sensitive for clients, so they do not have to be.
Model Customization for Clients
Getting more granular on a client by client basis, we filter the custom models through three separate lenses:
Filtered Through a Tax Lens
Before executing a tactical adjustment or reallocation, all accounts are reviewed in detail with a tax overlay factoring in potential liabilities.
Your Liquidity Needs Matter
Have a designated cash need? Not only are our portfolios designed with liquidity in mind, we seek out ways to increase cash within your accounts.
Exposure
When applicable, we review financial exposure with concentrated positions and create a roadmap for those assets in a way that is complimentary to the model.
Our design principles are important because everyone’s financial needs change over time, as life progresses. At MA Private Wealth, we do not believe in one size fits all investment approach. You deserve an investment strategy that is tailored to you and your family.
Execution
Investment models are reviewed and adjusted on a quarterly basis at minimum with the agility to strategically respond during times of volatility and rapid change in the markets. In fact, between 2020 and late summer 2022, MA Private Wealth has made 13 tactical adjustments to our portfolios.
Why is this significant?
We have the agility to respond strategically to what we know is coming up in the market and the ability to respond to uncertainty in the market - oftentimes at a benefit to you as an investor.
We review portfolios on a regular basis and each time we meet our clients, so we can ensure our principles of intellect, design, and execution are meeting each client’s needs and long-term objectives.
Client-Centric Communications
You can expect strategic insights each time your investment accounts are updated and multiple meetings each year with your advisor to review your portfolio.
A Client-Centric Investment Approach
With the three pillars of intellect, design, and execution as the foundation, MA Private Wealth advisors can manage investment portfolios to best serve the needs of our clients. The research of economists and investment specialists provides a foundation for our sophisticated models, which are then analyzed on a client by client basis. In times of market volatility and uncertainty, we have the agility to strategically respond and proactively pivot in strategy as needed. We prioritize client communications and seek to ensure our clients understand any tactical adjustments that are being made.
If you have any questions or are looking to talk with a financial advisor about your investment strategy, we encourage you to reach out by clicking this link. We would love to connect and share more about why our boutique firm is best equipped to serve your unique needs.
The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. MA Private Wealth does not provide tax or legal advice, and nothing contained in these materials should be taken as such. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Advisory services are only offered to clients or prospective clients where MA Private Wealth and its representatives are properly licensed or exempt from licensure. No advice may be rendered by MA Private Wealth unless a client service agreement is in place.
