Performance Reporting

Posted in Discretionary Management

Where our initial asset management efforts are focused on designing a purpose built portfolio for clients, this first step is followed by an equally important active and ongoing monitoring process. Think of it as the actual journey that follows mapping out your course. You’ll want to ensure that as you make progress, you stay on track. This is where our performance reporting platform takes shape.

We provide an array of client reports that clients can access 24/7 from the customized asset management web portal that we design for each client household. These reports illustrate performance net of fees, the holdings in your accounts, and their weightings relative to your personal customized model allocation.

In designing these online reporting tools, LeConte went a step further than our competition by incorporating a number of risk-based portfolio measures into our client reporting. These Modern Portfolio Theory statistics allow clients to compare not only the return of their investments but their risks to relevant market benchmarks. 

To our asset management foundation we added the capability to add outside assets into your customized portal. With a few keystrokes you can add your company 401k, your bank account and any other financial assets you hold at other institutions. We assemble all of this information nightly into comprehensive financial reports that give you the most complete picture of your financial condition available.

The final component of our client reporting services is LeConte Mobile, our smartphone app available for Apple and Android phones and tablets.



The hallmark of the platform is accountability and transparency, so performance is illustrated net of our advisory fees. Call us for an in-depth demonstration of our client reporting tools.

Client Reviews

Posted in Discretionary Management

Client reviews at LeConte present us with two important opportunities. Most importantly it is a fresh opportunity to hear from our clients about what’s new in their life. Reviews also provide the time to have an in depth conversation about financial markets and our clients progress toward their goals. Our objective will always be that our clients know how they’re invested, that how they’re invested is tangibly connected to what they’re trying to achieve, and that they have the information they need to confirm their ongoing financial progress.

Markets are more dynamic than ever before. and we pride ourselves on the consistency of our advice. At our regular meetings, we’ll look back, and look forward, to help you make sense of market trends and how they affect your investments. And we’ll review changes we’ve made and that we are considering.

Understanding Risk

Posted in Discretionary Management

Risk is a fact of life, and all investments involve some type of risk. Financial risk is the measurable uncertainty that the anticipated return will be achieved. In many instances, investment returns are directly proportional to investment risks; as risk increases, so does potential reward—and potential loss. Although investors must be willing to bear risk in order to achieve an expected return, our main goal is to help our clients manage financial risk through sound planning and financial control. We believe that familiarizing yourself with the different types of risk is the first step in learning how to manage it within your portfolio.



Below is a partial listing of the more commonly encountered types of financial risk:

  • Inflation Risk (sometimes referred to as purchasing power risk) – refers to the risk that inflation will diminish the buying power of an investor’s assets and income. Rising prices of goods and services can reduce the real purchasing power of the investor’s assets.
  • Interest Rate Risk – the possibility of the reduction of the value of a security, especially a bond, because of a rise in interest rates.
  • Economic Risk – the possibility that the revenue generated from a particular project will be insufficient to cover operating expenses and to repay debt obligations.
  • Timing Risk – the likelihood that an investor will buy or sell a security at an inopportune time. Typically this means buying a stock at its high or selling it at its low, or buying a bond just before interest rates rise or selling a bond just before interest rates fall.
  • Market Risk – the tendency of an entire class of assets to move together. The value of investments may decline over a given time period simply because of economic changes or other events that impact large portions of the market.
  • Liquidity Risk – the possibility that an investor will be unable to quickly convert a commodity or a security to cash without loss of principal.
  • Country Risk – the potential volatility of foreign stock, or the potential default of foreign government bonds, due to political or financial events of a given country.
  • Reinvestment Rate Risk – the possibility that interest or dividends earned from an investment may not be able to be reinvested in such a way that they earn the same rate of return as the invested funds that generated them.
  • Principal Risk – the likelihood that the value of the amount invested will decline due to bankruptcy or default.
  • Currency (Exchange Rate) Risk – the risk that an investment’s value will be affected by changes in exchange rates. If money must be converted into a foreign currency in order to make a particular investment, changes in the value of the currency in relation to the American dollar will affect the total loss or gain on the investment when currency is converted back. This source of risk applies only if the investor acquires foreign assets denominated in foreign currency. However, because investors may acquire shares in domestic firms with foreign operations or shares in mutual funds that make foreign investments, the investor may still indirectly bear currency risk.

The Benefits of Fiduciary Managed Accounts

Posted in Discretionary Management

There have never been more choices in the financial services arena. With literally thousands of mutual fund providers, it sometimes seems that there are just as many different ways to pay for services. If you are tired of trying to understand commission structures, contingent deferred sales charges, rights of accumulation, and the ever-increasing multitude of share classes, perhaps you should consider a managed account. When you utilize a managed account, you pay your financial advisor a management fee based on a percentage of the assets you invest. From a cost standpoint, the greatest advantage to this strategy is simplicity; you pay as you go. But there are many other advantages to managed accounts, including:


  • You sit on the same side of the investment table as your advisor: “I prosper as you prosper; I suffer when you suffer.”

  •  You do not need to make an upfront load commitment in order to do business with us. Some investors prefer the pay-as-you-go approach.

  • You can terminate your relationship at any time without paying closeout fee-based surrender charges.

  • You can purchase no-load, load-waived A share, and NAV funds.

  • You have virtually unlimited product options, including over 5,000 mutual funds.

  •  You have the ability to rebalance your portfolio across different fund families.

  • You can give us discretion without any concern for churning or exposure to continuous commissions.

  • You can transfer existing positions into an advisory account.

  •  You have the ability to harvest tax losses and stay in the market by purchasing exchange traded funds to wait out the Wash Sale Rule.

  •  You will receive enhanced quarterly investment progress reports and can potentially meet more frequently with your advisor to review your portfolio and your financial needs and goals.

Our Research Capabilities

Posted in Discretionary Management

Our access to state-of-the-art independent research helps evaluate current and future portfolio positions. There are research reports on more than 7,000 stocks, 10,000 mutual funds, and 7,300 variable annuity sub-accounts. We can provide you with hundreds of investment ideas, asset and sector allocations, earnings estimates, and overall portfolio guidance.

Additionally, the companies providing this research do not bring companies public, make markets in any of the stocks they analyze, or advise companies on mergers and acquisitions. Because these research firms are not broker/dealers and do not underwrite initial public offerings, you can feel confident that their analysis is not driven by any hidden agenda.

 

Evaluating Existing Holdings

Posted in Discretionary Management

Determining which existing positions should be maintained within your overall portfolio requires a detailed analysis of not only your current holdings, but also the proposed allocation going forward. Below are some questions we will explore when trying to decide if a particular position is appropriate for your portfolio:

  • Does the position have a capital gain?
  • How does the position compare with the recommended investments in its peer group?
  • Does the position overlap with any new positions?
  • Does the position have consistent returns within its peer group?
  • Does the position have style drift?
  • Does the position have any CDSCs or liquidation costs?
  • Can we find accurate information about the position on a regular basis?
  • Do you have an emotional attachment to the position (e.g., company stock)?
  • Does it make sense to hold on to the position?
  • Does the position match your goals?
  • Is the position compromising the entire asset allocation?
  • Does the position represent a significant percentage of the portfolio?

 

It is also important to remember that maintaining too many positions within the portfolio may become a deterrent to managing the portfolio effectively, and it may increase transaction costs. Ultimately, we must work together to determine which investments are suitable. In order to evaluate your current holdings, we utilize state-of-the-art portfolio evaluation tools, including Argus, Value Line, and Morningstar Advisor Workstation. These tools provide the capability to access current quantitative data on 40,000 stocks, mutual funds, annuities, and variable life sub-accounts, thus giving us a basis upon which to make recommendations about your existing positions.

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