Portfolio Asset Allocation and Management


Asset Allocation in Wealth Management: Our Approach

Asset allocation and management decisions are perhaps the most critical factors in developing a plan to meet long-term investment and wealth objectives. Asset location (the integration of estate planning and asset allocation) has the potential to significantly impact a family’s balance sheet, and is core to our portfolio construction.

Using low and non-correlated assets, our portfolio asset allocations are designed to increase expected return without increasing risk or, conversely, to maintain risk while increasing prospective returns. Asset class risks/returns may diverge significantly in the short-term, but we believe they are ultimately driven by economic fundamentals and have predictable long-term relationship patterns. A disciplined and formal diversification program increases the odds of investment success (although it does not eliminate short-term swings).

Convergent is an industry pioneer in the integration of asset allocation with estate, tax, and investment policy planning. With our approach to asset allocation within wealth management, we employ a rigorous analytical process in evaluating a wide range of potential investment strategies tailored specifically for your particular investment objectives. And long before our competitors, we embraced the "endowment" approach to investing, using alternatives for their potential risk dampening and diversification benefits.

Convergent's innovative technology helps us address big-picture asset allocation questions. For taxable investors, this means structuring the portfolio in a tax-efficient manner. Our proprietary PORTAX software is designed to optimize after-tax returns by building portfolios with sensitivity to tax structures. Our Monte Carlo Simulation Model is created to help determine how much (or how little) risk you need to take to generate the cash flow you desire to maintain your lifestyle, leave a legacy for your family, and/or meet your charitable intent.

We operate in the real world, developing portfolios designed to achieve the true benchmark for success: meeting your unique goals. At every step, Convergent looks beyond individual investments to consider your overall investment strategy so that no matter what the market is doing, you are properly positioned.