Defining and documenting client objectives

Before we can create a roadmap, we need to know where we’re going. We thoroughly examine our clients’ spending needs, legal constraints, beliefs, culture, and time horizon. We then set goals that factor in inflation and fees with an emphasis on assessing and controlling risk. Then we create relevant, peer-based benchmarks to assess performance.

Investment Strategy Development

Once we have a clear set of objectives and benchmarks, we begin careful construction of the portfolio using two basic inputs: one that is quantitative, based on the Black-Litterman model, and one that is qualitative, based on the input of the professionals on our Investment Research Committee. We synthesize these two streams of thought to optimize asset allocation, including a clear rationale for how each asset will help the client achieve its objectives.

Tactical Asset Allocation

Once the portfolio is built, the real work begins. We monitor and adjust asset allocations based on input from the Clearstead Investment Committee and Asset Allocation Committee, which meet regularly to discuss positioning of portfolios, capturing short-to-medium-term opportunities while maintaining a long-term viewpoint.

Investment Manager Research

Our due diligence process for investment managers considers both statistical data and intangibles that contribute to sustainable success. We factor in their investment philosophy and methodology and check to see whether they practice what they preach. In addition to in-person assessments and on-site visits, we also vet investment managers and strategies through the CIC and only select those who earn its stamp of approval. Our independence ensures our objective analysis. Through our experience, we have created the “Clearstead Research Principles” to guide us.