Net Worth Statement
Cash Flow Analysis
Asset Allocation Strategies
Investment Management
Investment Security and Manager Selection Process
Alternative Investments
Net Worth Statement
We prepare and maintain a detailed personal net worth statement. This tool is the main information source as to what a client owns, how assets are titled (husband, wife, trusts, family partnerships, etc.), and what liabilities have claims on the assets. We break down assets between cash, liquid investment accounts, retirement accounts, illiquid assets, real estate, life insurance, and liabilities.
Cash Flow Analysis
Clients find this analysis particularly useful in planning future flows of income, expenses, and asset growth. We build rates of return into the assets, inflation rates into the expense items, and incorporate non-recurring events in the specific years when they are planned to occur. For example, college for children or grandchildren can be built into the expense section for a specified period.
Asset Allocation Strategies
We assist clients with simplifying their financial affairs, with the goal of achieving a comprehensive investment strategy. We summarize and review current asset allocation and recommend an investment allocation that places a premium on asset classes, not specific securities. We use non correlated or low correlated asset classes in an effort to help minimize volatility and help seek year over year returns.
Investment Management
Fairport’s Investment Team offers diversified portfolio choices that serve a broad range of risk profiles and are aligned with an individual’s life goals. We are committed to determine what is the most appropriate investment style or styles for client taxable and tax deferred assets.
Investment Security and Manager Selection Process
In order to screen and select the securities, funds and managers most appropriate for Fairport clients and your specific portfolio, there is a rigorous 5-step due diligence process.
The process includes a quantitative screening of managers to look at different views on historical returns as well as historical risk relative to peers. The next four steps involve truly understanding the fund manager’s process, analyzing key risk statistics, performing a qualitative analysis and then keeping those managers on a tightly controlled “watch list”.
Our caretaking approach to partnering with our clients extends to this offering in that we seek to be careful, watchful and prudent in choosing the right mix for client portfolios.
Alternative Investments
There is no replacement for solid trust and personal attention, but in the last several years we have enhanced that trust with access to a core of seven classes of investments, including alternatives such as hedge funds, real estate, managed futures/commodities. These strategies offer you access to investment choices to diversify your portfolio which may not be available to many individual investors.
Diversification (the percentage of stocks, bonds, cash, and non-traditional assets in the portfolio) over a period of time has accounted for the portfolio’s core growth. It’s not finding the one right investment, but rather diversifying into different strategic investments that may help increase the probability of long term success.
With a risk and return profile that’s often unrelated to other investments like stocks and bonds, alternatives may serve as potential growth enhancers and portfolio diversifiers. Our expertise in this area helps open new opportunities to realize long term goals.
If you have specific questions about the clients we serve, or our fee structure, we invite you to
contact us.