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Consulting Group

Individual Investors ♦ The Investing Process

Consulting Group Investment Consulting Process

Step 4

Step One: Setting Your Financial Objectives
The process begins with a discussion of your investment concerns, experiences, sensitivities and goals. If required, an assessment of past objectives and performance will be conducted. The information you provide will enable your advisor to develop specific written investment objectives and policies. This may be the most important aspect of the relationship since without a clear long-term plan, investment activities would be aimless. A simple analogy would be to embark on a trip without a destination.

Step Two: Developing an Asset Allocation Strategy
Once objectives and guidelines are developed, the next vital decision is allocating assets, by identifying the correct blend of stocks, bonds and cash equivalents. Virtually all experts agree that asset allocation is a major determinant of investment performance. A meaningful performance benchmark must also be identified to help ensure that your goals are being met. Comparing performance to an arbitrary stock or bond index may be irrelevant unless it adequately reflects the securities within your portfolio.
Learn more about diversification and asset allocation (pdf)

Step Three: Selecting an Investment Manager
Using the Consulting Group database, advisors will diligently screen investment management firms, searching for those investment disciplines, philosophies and results that best match your requirements. After managers are carefully selected the monitoring process begins.

Step Four: Ongoing Evaluation of Managers and Portfolio Performance
It is your advisor's obligation to inform you when it makes sense to consider modifying your investment strategy. Adding a manager or adjusting your asset allocation due to changing conditions or new opportunities are but two examples.
Learn more about Manager and Portfolio Evaluation

Consulting Group, a business of Morgan Stanley Smith Barney LLC, provides advisors with investment advisor research and capital markets analysis to assist in planning your personal investment strategy. This site describes asset management services provided to U.S. persons and entities by firms that are registered as investment advisers under the Investment Advisers Act of 1940. This site is not a solicitation on the part of Consulting Group or any asset management firm recommended by Consulting Group to provide asset management services to non-U.S. persons and entities. This site is for informational purposes only and does not constitute either investment advice or recommendations on the part of Consulting Group or any asset management firms described herein.

Although the statements of fact and data herein have been obtained from, and are based upon, sources that the Firm believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions included herein constitute the Firm's judgment as of the date indicated and are subject to change without notice. This material is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.

Please contact your advisor for more information about available products, services and research.

For more information, please contact your Financial Advisor.

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