Sterling’s ADIM Approach To Investment Management |
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Sterling’s investment management methodology is founded on the tenants of institutional, fiduciary-based investing. The employment of portfolio modeling, broad diversification, specific manager expertise, and disciplined rebalancing all serve as key elements that define our process. Below, you will observe the framework around which this process is built.
While the illustration above depicts characteristics relating to “individual investors”, a similar methodology is pursued for institutional clients of our firm. In addition, there is an allowance for customized modifications within the process. Pre-existing holdings or concentrated positions may cause us to implement tax or hedging strategies specifically tailored to a client’s particular needs.
| Assess |
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Determine Circumstances
Upon a new engagement for asset management services, Sterling’s first priority is to determine the current financial circumstances of the client. This body of information would include such things as risk-tolerance, time horizons, tax status, current assets, preferences and constraints. |
Also of initial and paramount importance are the client’s personal and family goals. Clients have a wide range of lifestyle objectives. We can only offer appropriate advice when we understand what the client wishes to achieve or accomplish with a given amount of assets. This viewpoint and approach are reflective of our “financial planning first” philosophy. |
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| Develop |
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Develop Portfolio Plan
Equipped with a thorough understanding of a client’s circumstances and goals, we may now proceed with the development of an appropriate portfolio model with targeted risk and return attributes. Hallmarks of our model development process include broad diversification within and across the world’s investable asset classes, a proposed implementation timeline, and a written investment policy statement (IPS) outlining the details. |
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| Implement |
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Implement Portfolio Model
Having received acceptance and confirmation of the proposed model, Sterling will typically implement the proposal utilizing successful institutional managers via mutual funds and separate accounts. We utilize internal and external research methods in evaluating the suitability of a given investment for a client portfolio. Some criteria used in the evaluation process include performance, cost, management tenure, philosophy, and style consistency, in addition to many other factors. Passive “exchange traded funds” are also employed when appropriate. The client’s understanding and approval is again sought at this stage in the process. |
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| Monitor |
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Ongoing Oversight
Of critical importance is the ongoing and proactive role Sterling plays in monitoring the suitability and quality of the client’s portfolio. This process involves the periodic reassessment of client goals and circumstances. It also incorporates systematic rebalancing and continuous review of the investments used to fulfill the client’s portfolio model. We view the client as an integral part of the entire process as we work together toward the realization of their dreams. |
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