Over the years, we have developed and implemented proprietary systems to replicate at each level the intricate and highly disciplined approach that institutional money managers use in the management of large pools of pension assets.

In addition, our investment recommendations are driven by our multidisciplinary approach to comprehensive financial planning. This ensures that the investment allocation we ultimately implement is appropriate given the multiple variables that exist in your phase of life. Because we design each of our financial planning and investment management strategies to work in unison with your individually expressed goals and objectives, you can be sure that our advice is tailored to your needs.

We follow a well-defined, time-proven process to increase the probability that you will meet your financial objectives. Your portfolio strategy begins with a personalized investment analysis, then graduates through the portfolio construction process, in which multiple asset classes and multiple style allocations are combined to meet your individual investment objectives.

The result is a well-tuned, five step asset-management process designed to respond to the needs we have identified in your comprehensive financial plan, while also responding to the dynamics of the capital markets..

Our Five Step Asset Management Process

1. Through personal consultations, we develop a personal profile of your individual investment needs and objectives, time horizon, and attitude toward investing.
2. We develop a personalized asset allocation policy based upon your needs and objectives as identified in our initial consultations. This policy maximizes your investment returns relative to your risk tolerance through the carefully diversified allocation of your investments.
3. Your asset allocation policy is implemented by investing in a well-diversified portfolio that is professionally managed for tax efficiency.
4. Your investment portfolio is carefully monitored on an ongoing basis to ensure that it remains consistent with your asset allocation.
5. We will communicate with you on a regular basis and provide a comprehensive reporting package, including account level performance reports and statements providing details of your account.

Every investor is an individual, with different needs and different objectives. Whatever your objectives—wealth preservation, asset growth, current income, or minimizing taxes—it is critical to discuss them in detail with one of our knowledgeable professionals before you begin to invest.

We will help you determine whether you need investments that produce income, growth, or a combination of both. Your investment objectives will also help define your investment time horizon and risk profile.

Determine Your Risk Profile And Investment Objectives

It is important to understand your attitude toward investing. That is, how much risk, or variability of return, you are comfortable with. A critical way to understand your risk profile is to determine your investment time horizon.

Defining Your Investment Time Horizon

The amount of time you have until you need access to your investment seriously affects your portfolio strategy. An investor with a longer time horizon can afford to assume greater short-term risk in exchange for potentially greater long-term returns.

In addition, regardless of the type of assets held in your portfolio, time is on your side. The longer you hold any particular asset class, the less the variation in your return.

Setting Your Asset Allocation Policy

Research has shown that the asset allocation decision - how your investments are diversified among multiple asset classes such as stocks, bonds, and cash - has by far the most significant impact on overall performance. Historically, over 90% of the variation in returns is due to the asset allocation of investments in a portfolio. Market timing or specific stock selection, in comparison, makes little difference. This is why determining the right asset allocation policy for you is critical to your investment success.

Depending on how we optimize your portfolio, you can either decrease risk while maintaining a given level of return, or increase your potential return while maintaining risk at a given level. We routinely develop diversified portfolios with risk/return profiles varying from extremely conservative to very aggressive. Based upon your personal investment objectives, time horizon, and your risk profile, we will design an asset allocation policy that meets your particular needs.

We'll Diversify Across Asset Classes And Within Styles

Once your asset allocation policy has been developed, we'll diversify your investment portfolio across several asset classes within multiple investment styles. As time goes by, it is necessary to rebalance the asset allocation. Rebalancing is a disciplined method of ensuring the proper allocation to each asset class in your portfolio while adding the benefit of a built-in "sell high, buy low" strategy.

To control risk, we incorporate a formal rebalancing program. Through state-of-the-art technology, rebalancing maintains the asset class exposure within the specifically defined boundaries of your asset allocation policy. Without a rebalancing feature, the mix of assets in your portfolio may become inconsistent with your asset allocation policy. This can occur over time as different asset classes increase or decrease in value with shifting market conditions, and can lead to unplanned over- or underexposure to certain asset classes. Rebalancing ensures that your portfolio is being managed in a manner consistent with your designated asset allocation policy.

Trust Account Investment Management

Through an affiliation with the Santa Fe Trust Company, we provide trust account investment management services. Santa Fe Trust is a New Mexico state chartered independent trust company headquartered in Santa Fe, New Mexico. They specialize in providing fiduciary services, including trust account administration and record keeping.

In today's bank mega-merger environment, personal service has become a rare commodity. Santa Fe Trust is not owned or operated by a bank, savings and loan, broker/dealer, or insurance company. As an independent trust company, concentrating solely on trust administration, they can devote all of their financial resources, time and talents to providing clients with the highest level of service and maximum amount of personal attention.

Santa Fe Trust Company is a separate entity from the Fieldstone Financial Management Group, and operates under the supervision and regulation of the Financial Institutions Division (FID) of the State of New Mexico. Contact us if you would like to learn more about using Santa Fe Trust in your estate plan.