Investment Evaluation and Portfolio Management

INVESTMENT EVALUATION:  At  INNSBRUCK FINANCIAL CONSULTANTS LLC we begin the investment evaluation by reviewing basic investment theory with you.  We are firmly committed to the value of Modern Portfolio Theory of Asset Allocation and help you understand why it is important to build globally diversified portfolios.

The process begins with the financial plan where your personal and financial goals are established.  This process helps to identify your investment objectives, investment time horizons and comfort level for investment risk/return trade-offs.

We then review your current portfolio to determine if it is likely to provide you with the best probability of achieving your financial goals..  A significant part of this process involves analyzing how your assets are currently allocated across the various asset classes and help answer the question --'How diversified is my portfolio'?  (click on the  tab "LEARNING CENTER" > ARTICLES-Investing to read more detail on Asset Allocation, Asset Classes, and other articles of interest).

With this information we can help you develop an investment policy statement which clearly reflects how your money should be allocated.  We also will make specific recommendations about what changes you need to make in your portfolio.

PORTFOLIO MANAGEMENT:  At  INNSBRUCK  we are not "stock pickers". Our opinion is that with the thousands of available stocks, bonds, and related financial instruments on the market today,  no one individual or company is likely to best understand what combination is best  to own in any specific client's portfolio.  We believe that the use of mutual funds is the most efficient means to access  professional investment management for many, if not most, investors. 

 A mutual fund is a collection of stocks, bonds, or other securities that are managed by a professional investment company.  Each fund will have stated investment objectives which guides the investment decisions of the management company.  The funds are classified into asset classes based on their investment style and performance characteristics.  This provides a reasonable means to evaluate their performance relative to all their peers or like funds.  At INNSBRUCK we gather the available information on all mutual funds, separate them into their best fit asset class, then rank them based on the attributes that are considered important in meeting the client's investment objective. 

INNSBRUCK is independent of all mutual funds.  We have no ties to any fund in any manner;  thus there is no conflict of interest to cloud the recommendations we give our clients.  This independent approach allows clients and us to make an informed and uninfluenced choice, from all available managers, to which ones to utilize. 

Mutual funds can be "load" or  "no load". (click on the  tab "LEARNING CENTER" > ARTICLES-Investing to read more detail on "What Is a Mutual Fund Load").  A "load" is a fee charged to an investor who buys or redeems shares in a mutual fund and is how commissioned based advisors are compensated.  Since INNSBRUCK  is a FEE-ONLY Registered Investment Advisor, the selected funds are acquired without a "load" i.e. the "client pays the per share price without the "load" included.  This allows us to buy any mutual funds in the client's portfolio without  incurring commission charges.

REPORTING & REVIEW:  After implementation, the portfolios are monitored.  In addition to the monthly/quarterly account statements received from Pershing LLC, the custodian, we will report quarterly on performance, fund rankings, asset allocation, rebalancing and fund recommendations.  We will discuss that report with you, consider needed changes to include adjustments to your goals, then implement those agreed upon conclusions.

At INNSBRUCK our success depends on your success.