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Susan Pevear, CFA |
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Frequently Asked Questions Why was Portfolio Analysis established? Portfolio Analysis was established to offer second opinions from a fiduciary perpective. Second opinions in the investment advisory world are rare. Unlike the medical arena, the concept of obtaining a second opinion has not been widespread. Few - if any - other services were designed for the sole purpose of second opinions. Portfolio Analysis has been established to meet this need. What exactly is the service provided by Portfolio Analysis? Action-specific decisions are made on the investments under review. I
suggest exactly what action to take; for example: to sell a certain security(s), to buy more of a specific holding(s); to purchase new or different investment(s), to continue holding an asset(s); to set a timeline and
plan for future action; and other investment possibilities. These specific steps are communicated in writing or verbally and explained in as much detail as the client desires.
Note that the client is in control of the review and determines the extent of my involvement. The number of decisions rendered, the frequency of a
review, the monitoring of the portfolio—are all defined by the client, with as much guidance as appropriate. In turn, the scope and cost of the project is a conclusion that fits the exact needs of the client. What kind of specific investments are reviewed? In order to give a comprehensive second opinion, knowledge of the entire range of investments in multiple markets around the globe is essential. That range includes: equities, fixed-income instruments, mutual funds, exchange-traded funds, cash-equivalent alternatives, futures and options, private equity, closed-end funds, hedge funds, and other alternative investments. This all-inclusive perspective is vital for accurate portfolio assessment, yet difficult to find amongst advisors. By design, my professional background and academic experience enables analysis of this breadth and depth. The service accommodates a variety of investors. Individual investors seeking the opinion of an experienced professional appreciate the opportunity to get seasoned counsel. (The non-discretionary and non-custody nature appeals to 'do-it-your-self' investors.) Individuals or organizations with existing advisors (e.g. money managers or brokers) find a third-party perspective helpful. In these cases, the second opinion is intended to improve the relationship and is not competition. Companies with retirement plans utilize the service in a consulting capacity. Money managers and financial planners themselves ask for a review of their model portfolio and investment approach. Family offices and attorneys have found the service to be an important resource. Trustees and other fiduciary professionals have appreciated a second opinion as well. How does Portfolio Analysis differ from other advisory services? Portfolio Analysis is independent and without affiliation to any other investment organization. This autonomy allows for total objectivity when
reviewing a client's portfolio. There is no bias towards one kind of investment over another or any particular company's products.
Portfolios are customized to fit the client's needs, rather than fitting the client to an investment model or money management firm's approach—that may or may not be what the client needs. How does Portfolio Analysis charge for its services? The most common arrangement is explained on the Fee Schedule page. Occasionally a client chooses billing on a "per decision" basis, which means the number of recommendations or decisions determines the total cost of the service. Although the retainer fee is still required, whatever time it takes or dollar amount reviewed no longer needs to be the key consideration. Pioneering and unique, "pricing per decision" offers the client a precise, equitable way to pay for the thought-process and experience behind the decisions that constitute investment advice. This billing methodology can be more efficient, depending on a client's situation. What makes the most sense for the client determines its use. For project work, as detailed on the Other Services page, an hourly rate is charged. The number of hours is estimated in advance and the hourly rate is $400/hour.
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E-mail:
spp@portfolioanalysis.biz |