In order for SJF Investment Management to determine the most appropriate investment strategy for our clients, we follow a process.
Starting with our initial exploratory meetings, you will feel the benefits of working with an independent firm. We strive to acquire a strong grasp of each prospective client's financial situation, risk aptitude, investment experience, and goals.
We will get to know each other, this mutual intimate understanding is important to us, our clients and is essential for us to serve as stewards of your wealth. There is confidence that is achieved from getting to know each other. Once we are comfortable with one's balance of expectations and resources, we take the time to ensure our wealth management and investment philosophy provide a good fit for you and your family.
The process steps are as follows:
Client Discovery: Its starts with a simple conversation. This first step in the process and is a critical part to establish a long term investment strategy. We spend a significant amount of time getting to know each other. It is a time when you ask us questions and express concerns. It is a time when we challenge ourselves—and we’ll challenge you—to think clearly and tell your story. We explore your vision for your ideal life, your financial commitments, and how you view—and experience—risk.
Risk Evaluation: We spend a good amount of time evaluating your attitude toward risk. At SJF Investment Management we find it is crucial that we determine the level of risk a client would like to take. We emphasize earning a superior rate of return is desirable but managing risk exposure is the most important consideration in portfolio design. The client’s expectations of performance are discussed and should be realistic. By knowing your risk tolerance in advance, you can better control your emotions and stick to your long-term strategy during the inevitable bumps along the way.
Asset Allocation Strategy: The next step in the process is to create an asset allocation strategy that aims to balance risk and reward by aligning a portfolio's assets according to the client’s goals, risk tolerance, liquidity needs, expected returns and time horizon. Using such variables, our research models and analysis we design a client’s portfolio. Using a core (strategic allocation) and satellites (tactical allocation) the clients assets will be divided into different asset categories, such as stocks, bonds, and cash . We take this process a step further to achieve diversification. For example, dividing a client’s portfolio to have different types of stocks, such as large cap, small cap and international. Another step further, within those divisions, we can select different sectors (i.e., technology, healthcare, telecommunications) and different industries within the sectors. The clients’ portfolio will be dynamic and research driven using LPL Research and third party research and analytical tools. For example, if research believes that the market has more downside risk than upside opportunity, we will lower the overall beta of the portfolio and shift to sectors that historically outperform when the market declines. The goal is to capture upside and limit downside risk. The goal is simple as it sounds - manage the portfolio’s asset allocation to take advantage of opportunities, avoid unnecessary risks and protect portfolio values.
Strategy Implementation: Over a period of 30 to 90 days we will begin to implement the asset allocation strategy (based on the economic outlook and market conditions). In this step we are in regular contact with the clients, ensuring they are aware of all portfolio changes and updates.
Monitor & Communicate: SJF Investment Management will constantly monitor the client’s portfolio. We will provide the clients with regular monthly updates and reporting on a quarterly basis. We encourage clients to ask questions and express their thoughts or concerns.As our relationship with you progresses based on market conditions, we will rebalance or identify any adjustments that may need to be made to the portfolio.
Investing involves risk including loss of principal. No strategy assures success or protects against loss. Tactical allocation may involve more frequent buying and selling of assets and will tend to generate higher transaction cost. Investors should consider the tax consequences of moving positions more frequently.