The Portfolio Management Process at StateTrust, a TRIED AND TRUE COURSE FOR SUCCESS
StateTrustspecializes in providing a complete range of financial products, services and strategies to help its clients to grow and preserve their net worth, while reaching their investment objectives and financial goals.
Miami, Florida, USA – March 20, 2014 – The investment and portfolio management process at StateTrust starts by defining the client’s financial goals, then they determine an investment allocation strategy, choose the right financial vehicles, select an appropriate money manager with the expertise to advice on portfolio management decisions and finally, design a portfolio that encompasses the right mix of assets to suit the client’s financial needs and tolerance for risk.
To create a financial profile we match the following investment parameters with the client’s specific investment goals and objectives:
Risk tolerance level: The amount of risk the client is willing to take as an investor. Generally, higher returns imply a higher amount of risk.
Time Horizon: Defining the amount of time available to reach a financial objective is critical in determining the investment vehicles used to attain that goal.
Liquidity: If the client might need to cash out a significant portion of their investments in a short time period, it is important to look at the ability to convert the investment into cash at any point without having to sell it at a significant discount from its current market price.
Income Tax Considerations: Investment selection can be influenced by the client’s tax bracket, available tax credits, amounts and types of income, deductions and depreciation.
Expected Return on Investment: Based on historical information of returns for different asset classes. Since past performance does not guarantee future performance, the difference between historical returns and actual returns could be significant.
Systematic Risk: The risks that cannot be reduce or eliminate, such as Inflation, marketplace, interest rate, politics and regulations.
Unsystematic Risk: Company-specific or industry-specific risk in a portfolio. It can be significantly reduced or eliminated through diversification.
Minimum Required Rate of Return: The amount of return necessary to warrant a purchase. This rate is defined by the client’s financial objectives.