Clearview’s Risk Management Solution can help you sleep at night

While most investment professionals look upon risk as market price volatility, most investors take a more personal view.  Their comfort level with a portfolio is more often a function of recent market performance (which goes a long way toward defining risk tolerance), anticipated future returns, and current spending needs.  This assessment becomes even more pronounced in retirement because losses in portfolio can be more difficult to recover. 

At Clearview we approach risk management as a multi-factor challenge which includes gaining understanding into our client’s investment history and tolerance for risk and then developing a unique plan around these insights.  There are five factors described below that can support a more successful risk management solution.

Key Factors in Risk Management include:

Clearview’s portfolio management process seeks to first control risk and then maximize return given an investor’s tolerance for risk.  At the portfolio level risk management involves asset allocation, a diversified portfolio managed around sector weightings and a buy/sell discipline.  Please refer to our Business Summary for additional information 

A well-constructed asset allocation is the result of several important portfolio characteristics including client objectives, constraints, risk tolerance and time horizon.  Through the development of a custom tailored asset allocation, disciplined selection of securities and limiting costs,  we can reduce the impact of unexpected events.  Please see Asset-Allocation for Retirement Portfolios for further information.

Avoiding market timing – Trying to beat the market through timing both the purchase and sale of stocks can mean missing the best market trading days which often leads to significant underperformance.  We believe investors should have a buy and hold strategy and let time reward them for their patience.  Please refer to Market Timing:  Missing the Best Days for additional information.

Use of balanced portfolios can reduce volatility or improve return for a given level of risk.  The risk-reward available from balanced portfolios is considered a better solution by most advisor professionals.  Please see Why Balanced Portfolios Make The Most Sense for Investors for more information.

Thoughtful, client focused, risk management allows us to build a more comprehensive solution for our clients.  With a “hands-on” approach to the portfolio we can make necessary changes in real time, before a small issue becomes a larger problem.

Risk management for high-net-worth clients is not just about managing volatility but rather helping clients to remain disciplined when markets are at their most turbulent.  Through the combination of a long term approach, methodical asset allocation that avoids market timing and thoughtful, client focused risk assessment we can help build the confidence necessary to weather the periodic storms of the markets.  Our role is to support clients by improving their ability to sustain market events through a well-designed portfolio and thereby assist them in achieving their goals and objectives.