Financial News

#1 Thematic Systematic Investing Top 1% – YTD percentile ranking out of 428 World Stock managers as of 9/30/16
#1 – YTD absolute ranking out of 428 World Stock managers as of 9/30/16

#2 Global Thematic Accumulation Top 1% – YTD percentile ranking out of 428 World Stock managers as of 9/30/16
#2 –YTD absolute ranking out of 428 World Stock managers as of 9/30/16 

Part of a successful investment methodology is generating positive investment results in multiple market conditions. In today’s investment world, investors need to look beyond the traditional bull market and bear market. Investors also need to consider what we at 4Thought Financial Group define as the “Wolf” and the “Eagle” portions of market cycles.

Gaining exposure to low-correlation diversifying investment methods by the conventional route – direct subscription to Hedge Funds and Private Equity Limited Partnerships – is fraught with difficulties. Such investments require accredited investor status; lack of transparency with respect to strategies, underlying investments, and performance reporting; high fees (usually an asset based fee and a percentage of gains); low liquidity, lock-up periods, infrequent redemptions, and surrender charges; and ongoing capital commitments (with private equity) that may be difficult for clients to meet. But there are alternative routes to getting exposures to the strategies and risk premiums employed by Hedge Funds and Private Equity.

We consider ourselves advocates for the idea of systematic savings and investment, and we have developed focused proprietary strategies to potentially maximize the benefits of this process for our investors.

Professionals often make the mistake of not working and planning alongside the heirs of their clients. Not exploring the wishes of both clients and their children not only causes miscommunication in the development of a plan that efficiently transfers assets but also may displace the professional relationship in the future.

Financial professionals are starting to grasp the power of technology as a tool to manage client assets. A savvy financial professional will not only utilize technology but will develop a corresponding investment methodology and strategy behind it.

Investment professionals can utilize specialized Separately Managed Accounts (SMAs) as a way to mitigate the risk of their clients. SMAs can be customized by investing in certain securities or certain strategies. They may, for example, wish to screen for equities or fixed income and invest according to a selective or opportunistic strategy.

The subject of what to do with assets after retirement or death is an understandably difficult topic to address. Upset family members, lost documents and the absence of the grantor after death are among some of the difficulties that tax professionals face. But the ultimate difficulty lies in having the conversation in the first place.