At Virtue Asset Management our portfolio managers start by understanding the investor’s goals and objectives. These could be long-term growth, income generation, capital preservation, or a combination of these. Clarifying the objectives helps determine the appropriate risk level and asset allocation.
Our portfolio managers evaluates the investor’s risk tolerance and capacity to handle fluctuations in the portfolio’s value. Risk tolerance is influenced by factors such as age, financial situation, investment experience, and personal preferences.
Based on the investment objectives and risk assessment, our portfolio managers determine the appropriate mix of asset classes, such as stocks, bonds, cash, real estate, and alternative investments. Asset allocation plays a crucial role in determining the overall risk and return potential of the portfolio.
Diversification is a risk management strategy that involves spreading investments across different assets, sectors, and geographic regions. By diversifying, Virtue Asset Management aims to reduce the impact of individual asset volatility on the overall portfolio.
At Virtue Asset Management we carefully select individual investments (including individual stocks and bonds) that align with the portfolio’s strategy and objectives. The selection process considers various factors, including financial performance, company fundamentals, industry outlook, and valuation.
Markets are dynamic and asset values fluctuate, leading to changes in the portfolio’s risk-reward profile. Our portfolio managers continuously monitor the portfolio’s performance and periodically rebalance it to maintain the desired asset allocation. Rebalancing involves selling overperforming assets and buying underperforming ones to bring the portfolio back in line with the target allocation.
Effective communication with investors is essential in managing their expectations and keeping them informed about the portfolio’s risk-reward profile and any changes made to the investment strategy. At Virtue Asset Management, we send a quarterly update to clients. This update includes a review and outlook of the market plus the returns of each investment. We offer to meet quarterly with clients to review their financial situation.