Investment Monitoring: a peace of mind and a bird’s eye view of your investment portfolio

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As a successful individual, you have likely decided to save for your retirement. Are you fortunate in that you have accumulated enough wealth to have your portfolio spread out across several different managers and different styles of investment solutions? Have you lost focus on the view from 30,000 feet? If so, you are not alone. Brokerage statements can be confusing and when you have several professionals managing your wealth, the amount of mail and statements can be overwhelming. How can an investor tell if their overall asset allocation matches what they are comfortable with? How can an individual investor tell if the managers are providing them with investment solutions that match the risk tolerances they have requested? Many high net worth investors are left wondering what they actually own and how much risk they are really taking.

The Damocles Solution    At Damocles we analyze each of your individual portfolios in order to ensure that they match the objectives you have set out. We then combine all of your portfolios into one in order to give you a global understanding of your true asset allocation, how your global portfolio compares to your overall risk tolerance and objectives, and whether or not they match up to your expectations. When an individual investor gets spread out, it is easy to lose sight of the global picture. Our clients often find out that they are taking on an inappropriate amount of risk -either too much or too little- or that several managers have similar styles that lead to overlap. We can identify issues such as concentration in particular issuers or maturity dates. In some extreme cases, we can identify regulatory issues with respect to how the accounts have been managed.

Recently, we reviewed a series of portfolios in excess of $20 million that comprised the majority of an Ultra-High-Net-Worth investor’s liquid portfolio.  We found miscalculations in fees that resulted in him being overcharged substantially.  Just this one finding alone saved our client thousands of dollars a year!  We identified several areas of “mandate creep”, where the portfolio had diverged from the stated goals.  We also identified two significant concentration issues of which he was completely unaware.  Finally, we identified a type of risk associated with products called “NVCC” preferred and debt that had never properly been explained.  These findings are fairly typical of what you can expect from us.

We will provide you with a comprehensive report that breaks down each account, as well as the global view. You can take this report and use it as a stepping stone to identifying managers who are problematic and have portfolios that need to be adjusted. Our report is an independent analysis that is completely conflict-free as we do not provide any investment solutions, only pure analytics for you to truly know where you stand. We are not limited in any way: we can analyze your mutual funds, your private investments, real estate, and investment portfolios. In the best case you can reassure yourself that you have what you’ve asked for; in the worst case, you may identify problem areas in your portfolios before they get out of hand. Remember, our motto at Damocles is:

Trust, but verify.

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