Systematic and Personalized Management

Systematized and customized portfolio management for more than 2,000 clients is not that obvious a task. The monitoring of a large number of portfolios, while taking into consideration the investment objectives of each client, his/her degree of conservatism, his/her tolerance to volatility, and his/her whims, all of this in the context of a constantly and rapidly changing environment, is the main cause for the slowdown in growth of many an investment advisor.

We have studied the matter and technology came to the rescue.  By and large, we have created approximately ten portfolio profiles, which reflect the investment horizon and objectives, the risk tolerance, the size and the tariff structure. These profiles include the weights of various asset classes, the average duration of fixed income securities, the selection of each security in the portfolio, etc. A portfolio profile is allocated to each customer. The portfolio profile of each customer is compared regularly to his/her real one according to all the predefined criteria and a discrepancy report is produced. When we recommend changes to the portfolio to one or more customers who share certain objectives, the software automatically produces a list of the suggested purchases and sales for each account on the basis of the criteria that we predefined.

This is a powerful technology in that it takes into consideration every aspect of portfolio management, including constraints on certain securities, the account in which each security should be held, the overall basket of assets that the customer holds, etc.

The effectiveness and the rigour of our management process are greatly enhanced with this technology. This allows for an increase in volume without the risk of diminishing the quality of the portfolio management.