Part of an investment advisor’s role is communicating investment performance and investment risk.
People naturally become more risk-averse as they age and often seek to preserve the money they have earned as one of their primary investment goals. There is usually a season in someone’s life in which traditional stock market risk can be tolerated; typically risk tolerance begins to change as a person ages.
The most important question in stock market investing is this:
How do I minimize downside stock market risk while participating in its upside?
Every answer seems to be imperfect. An investor or an investment advisor can attempt to minimize that risk – but risk can never be eliminated.
Reppond Investments, Inc. uses both active and passive investment management approaches. Clients are placed in the appropriate strategy or strategies based on their goals, tolerance for risk, time horizon and whether or not it is a taxable or tax deferred account.
Client accounts are monitored on a continual basis to determine how much of the client’s assets should be exposed to the market, based on a complex set of criteria. The purpose of this is to attempt to optimize performance and minimize risk. Clients pay for this level of attention to their accounts.
Reporting and Tracking
The investment industry seldom provides information to the individual investor that is easily understood so they have an up-to-date view of their account performance. We believe that part of an investment advisor’s role is communicating investment performance and the risk being taken to achieve that performance.
We use Blueleaf automated data reporting software as a tool to communicate to our clients about their performance, account balances, holdings and allocations for all of their accounts and with most custodians. Account performance is compared to standard industry benchmarks and data is updated daily. Clients are provided with login credentials and are able to access this information at any time.
We also provide customized monthly reports to clients that explain the status of their accounts. In contrast, many investment advisors tend to provide template-type information on a quarterly basis