Developing a coordinated Investment Policy is
the bridge that links the financial
objectives with the management of the portfolio. The
following steps are required to create a meaningful investment
strategy.
The
Required Rate of
Return
Financial Objectives Can Be
Quantified
The Rate Of Return Required To Reach
Objectives Becomes The Baseline For Managing The
Portfolio
Assessing
Client Risk
Tolerance
Risk Means Different Things To Different
People
Risk Assessment Is Key To Setting
Reasonable Expectations For Portfolio
Returns
Agreeing On
The Risk / Return
Objective
Combining Return Requirements &
Risk Tolerance Bridges The Gap Between the Planning
Process & Portfolio Management
Agreement On the Risk / Return Objective Is
The Basis For The Investment
Policy
Implementing
The Investment
Policy
The Investment Policy Statement Provides
The Parameters For The Management Of The Portfolio
Consistent With Client Objectives
Strategic Shifts Can Be Made Based Upon
Economic And Market Conditions To Reduce Risk
Exposure
SFMG Wealth Advisors
2500 Dallas Parkway, Suite 214
Plano, TX 75093
(972) 960-6460
