Asset Management

offered through Raymond James Financial Services Advisor, Inc. a Registered Investment Advisor

Once the investment professional has completed customizing a personal asset allocation model for the prospective client, he/she will begin selecting the underlying security holdings. This process will, by necessity, involve several steps.

First will be a detailed analysis of the prospective client's existing holdings. Obviously, if the investment corpus to be managed is currently in cash or short-term fixed income holdings (i.e., money market funds, Treasury Bills, etc.), this process is fairly simple. However, in most instances, the funds to be managed are fully/mostly invested in non-cash securities. 

If so, the investment professional will review the holdings, security by security, from a perspective of tax status, cost basis (if applicable), valuation, performance, projected performance, industry, maturity, liquidity, etc. In addition, each investment will be identified by asset category and sub-category to determine compliance, or lack thereof, with regard to the prospective client's asset allocation targets. 

Finally, the investment professional will make a determination as to the appropriate form(s) of security ownership (i.e., individual securities, professionally managed segregated accounts, mutual funds, unit investment trusts, or, often, some combination) within the context of the prospective client's goals, risk objectives, investment knowledge and experience, tax status and their degree of desired participation in the investment management process. 

After this analysis is completed, the investment professional will know which existing holdings are consistent with the prospective client's target asset allocation, which holdings have a positive risk/reward outlook, which holdings are consistent with our firm's investment philosophy and, finally, which holdings represent an appropriate form of ownership for the prospective client. On the basis of these factors, recommendations will be presented to buy, sell or hold existing securities.

To finalize the asset management recommendations, the investment professional will utilize, as appropriate, Early McClintic & McMillan's quantitative investment analysis disciplines, in addition to Raymond James & Associates' fixed income inventory, unit investment trust inventory and/or Asset Management Services, to complete the portfolio in a manner consistent with the prospective client's asset allocation model.

Finally, a recommendation will be made as to the timing of implementing the investment plan. It is essential to note that this recommendation is not a function of attempting to predict the financial markets' near-term direction, but is instead driven by the investment professional's analysis of the prospective client's goals and risk objectives. On the basis of this analysis, the investment professional will recommend that the client fully implement the investment plan immediately, or dollar cost average (i.e., invest equal dollar amounts at equal time increments) until the portfolio is fully invested consistent with the asset allocation model.

“Investors are reminded that dollar cost averaging does not assure a profit and does not protect against loss in declining markets.  Since it does involve continuous investments in securities regardless of fluctuating markets, investors should consider their willingness to continue purchases during market downturns.”

Assessment | Allocation | Asset Management | Monitoring