Our investment process reflects our strong commitment to our fiduciary responsibility to place our clients’ interests ahead of our own. Our process is client-focused, strategic, disciplined, diligent, and above all - objective. This process has several steps.
We begin by listening. The more we know about you, the better we are able to advise you. We ask a series of questions to learn about personal and family circumstances, cash flow needs, long-term objectives, and wealth transfer and charitable intentions. We will discuss risk tolerance, income tax issues, and personal preferences and biases. This creates a basis for an informed discussion about asset allocation.
We believe the creation of an asset allocation requires both art and science. The science is based upon Modern Portfolio Theory. Allocations are ultimately determined by our beliefs regarding each asset class and our knowledge of your circumstances. As a result, allocations are more appropriate and reflective of your desired risk and return parameters and your unique circumstances.
Once the asset allocation is determined, the Investment Policy Statement (IPS) is drafted to document the plan for the portfolio. The IPS is tailored to our clients’ unique needs and circumstances. It addresses cash flow needs and expectations, risk tolerance, time horizon, income tax issues, and asset allocation. It also identifies the criteria we will use to select and evaluate managers. The IPS is the “business plan” for the portfolio – it provides the framework for all future investment decisions. This is why after reviewing and approving the policy, as well as any future changes, we ask the client to sign it. Then both of us are clear on the intended path.
After we have prepared and signed the Investment Policy Statement, we will select the investment managers through which we will implement the components of the investment plan. We utilize only third-party managers that we recommend as a result of our rigorous due diligence process. We receive no compensation from those we select, eliminating any conflict of interest. Once the managers have been selected for the client portfolio, we will then implement the plan.
For more information on our manager research process, click here.
We evaluate the investment portfolio and review a client’s financial circumstances on an ongoing basis. We use our comprehensive quarterly performance report to help gauge the progress of the plan and the value each manager is adding to the investment portfolio. The report illustrates the total portfolio performance in comparison to a customized benchmark for the allocation, and it measures each manager against an appropriate benchmark and peer group. As a routine part of this review, we discuss and determine whether rebalancing the portfolio is warranted, which takes into consideration any tactical changes we may recommend.
Our proprietary performance reports, developed for the exclusive use of HCCM’s clients, provide clear and actionable information regarding a client’s portfolio, including the current allocation compared to targets, performance of the total portfolio compared to a customized benchmark, and the absolute and relative performance of the individual investment managers. It also provides some analytical information on the managers. Our report does not replace or repeat the statements you will receive from your custodian, Charles Schwab & Co. Rather, it augments your overall reporting by providing useful information that helps you understand and evaluate the portfolio. Please click here to see a sample of High Country Capital Management's quarterly report.*
Clients have Web-based access to view account-level data at Charles Schwab & Co. and can view more detailed asset allocation data via a secure log-in on the High Country Capital Management homepage.
*The sample quarterly report are for illustration purposes only and are not, in any way, advertising performance. It should not be assumed that recommendations, made in the future, will be profitable or will equal the performance of the securities in this report.