Our multi-step investment process creates a portfolio calibrated to each individual investor. We develop an appropriate blend of asset classes with the goal of providing long-term returns to suit each client’s investment goals while balancing risk.

1. Defining Your Investment Vision

Clarifying your investment objectives helps us establish the appropriate benchmark to measure success. Time horizons and income needs can vary depending on whether you’re investing toward retirement, a child or grandchild’s education, or a major purchase such as a second home. Whether you’re looking to grow an investment over the long term or protect a shorter-term investment, we’ll help you set goals that we believe to be desirable, realistic, and achievable.

2. Strategic Asset Allocation

Next comes the cornerstone of our investment process: strategic asset allocation, which includes implementing various strategies to optimize portfolio performance. The Hennion & Walsh investment approach holds that overall portfolio performance is determined primarily by the performance of the combination of its major asset classes, not the performance of its individual components. Furthermore, we encourage diversification across a range of asset classes and sub-asset classes to help insulate the portfolio from wide market fluctuations; a portfolio that is overly invested in a single asset class can expose the investor to unacceptable levels of risk.

In planning your portfolio, we consider the full range of available asset classes, including the major categories of stocks, bonds, and cash (including money market funds), as well as certain non-traditional assets such as real estate, precious metals, and other commodities to aid in your investment selection. We further break down these major asset classes into sub-asset classes by looking at factors such as market capitalization, style, regional focus, multinational focus, quality ratings, dividend yield, and other factors. We then analyze the risk-adjusted performance of each of these sub-asset classes over time, both in isolation and in concert with the broader markets. This allows us to discern to a high degree of specificity which combination of asset classes is best suited to your investment goals, and which sub-asset classes may complement the strengths or counterbalance certain areas of risk within your existing portfolio.

After our research team has completed a series of rigorous analyses, you will receive a customized blend of asset classes that our research suggests will be most likely to satisfy your investment goals in the time frame you desire.

Source: Callan Associates

3. Choosing the Right Investment Strategies

Our planning doesn’t end with strategic asset allocation. We recognize the importance of investment managers and mutual funds in some cases when it comes to optimal performance. Just as with asset classes, diversification here is critical. We blend a mix of aggressive and conservative strategies to deliver returns that align with your investment objectives and goals, ensuring a robust investment selection.

Because we perform primary research on every money manager we work with, we have access to extensive data sets and impartial analysis that help us to determine with a high degree of confidence the suitability of a manager to a particular portfolio with respect to their associated asset class, maximizing the value of your assets. By combining these considerations with asset allocation criteria, we create a multidimensional portfolio balanced across asset classes and managers, providing your investment with greater breadth, depth, and stability.

4. Dynamic Rebalancing for Stability and Growth

Some wealth managers rebalance portfolios according solely to a predetermined time period. We take a different approach, and depending on the program you are invested in, we monitor your portfolio and look to rebalance whenever your exposure to a particular asset class falls out of a predetermined range in accordance with a predefined review schedule, investment selection, and strategies. This approach, along with our strategic asset allocation, mitigates the effect of swings in the market and potential concentrations in certain asset classes while aligning with your investment objectives.

5. Ongoing Monitoring and Transparent Reporting

At Hennion & Walsh, our investment process ensures you stay involved and informed. You’ll have online access to your account, receive monthly statements and quarterly performance reports, and see how our investment process is working for you without extra calculations or research.

Because we want your investment to succeed as much as you do, our research team will continue to monitor your account and make changes as necessary. In so doing, the research team will notify your investment representative promptly so they can explain the rationale behind these changes. Should you ever have any questions or concerns regarding your portfolio, your dedicated investment representative is always available to you.

Diversification does not insure profit or protect against loss in a declining market.