Defining Objectives & Creating IPS

At QSI, we implement a broad range of structured asset allocation strategies that cover a wide range of investor goals and risk tolerances.


Our Investment Policy Questionnaire helps the Financial Professional and our client determine a portfolio that best suits their investment objectives, comfort level and time horizons.

Some factors evaluated in the Investment Policy Questionnaire:

  • Investment Goals
  • Time Horizon
  • Liquidity Needs
  • Investment Experience
  • Risk Profiling & Evaluation
  • Investing "Habits and Trends"


MONITORING AND REBALANCING

SET OBJECTIVES AND CREATING IPS

INVESTMENT PROCESS

Advantages to Asset Class Investing


Key Factor determining portfolio return: Studies show that asset selection contributes 94% of an investment's return.


More efficient: Most efficient exposure to a wide variety of asset classes for investors without having to acquire all the underlying stocks/bonds.


Disciplined: With asset class investing, QSI takes the emotion out of being in the right place at the right time.


Consistency: QSI's portfolios are structured to "manage between the extremes" combining market research & investor behavior research.

With respect to investor behavior: We recognize that short term uncertainty and volatility in the markets can undermine investors' long term objectives and investment decisions. Through the investors' written Investment Policy Statement, we can monitor, re-evaluate and track their investment experience and make adjustments as needed to keep them on course.

Our success is measured in how well your investment plan accomplishes your investment objectives set forth in your Investment Policy Statement and through our on-going advisor and client relationships.

ON-GOING EVALUATION OF CLIENT PORTFOLIOS

  • Continuous Evaluation and Tactical Management
  • Re-Balance to keep aligned with risk/return parameters
  • Upgrade for diversification of investment

Effective Diversification: ETF's and Index Funds


Broad diversification: Adapting a disciplined approach with ETF's and index funds, our core portfolio allocations allow an investor's participation in the market without the inherent risk of trying to predict the best stocks, time, or sector to be in to achieve a certain level of return.

Preventing Style Drift: Style drift can occur purposefully, when managers over or under weight specific sectors and/or stocks; or, it can occur accidentally, when a funds' allocation to a sector grows because of strong performance in that sector. Subsequently, the risk parameters associated with a portfolio can increase without any changes in the underlying investments. With ETF's and index funds, this specific risk is reduced due to the nature of these funds.

Lower Fees: Asset class investing using ETF's and index funds provides broad diversification with less cost. Studies show that 85% of active managers fail to outperform their benchmark yet these funds are typically associated with higher fees and potentially more risk.

Tax Efficient: ETF's and index funds offer a unique opportunity for investors to benefit from the vehicles' inherent tax efficiency while gaining exposure to a portfolio that is potentially more diversified. An ETF's structure makes them tax efficient as low turnover reduces any taxable events and the investment decisions of one investor does not affect another in the same portfolio as with the average fund.

At QSI, we implement a broad range of structured asset allocation strategies that cover a wide variety of investor goals and risk tolerances. We primarily use ETF's and Index funds when constructing core portfolios because we believe they provide the best, most efficient exposure to the asset classes and sub asset classes for our core portfolio strategies. We are not limited to any one provider but review the entire ETF universe for the best asset class representation, tax efficiency, liquidity and lowest cost.


Create Personalized Investment Policy Statement

Managing Client Expectations and Monitoring for Results:

Each of our portfolios varies in terms of asset allocation and weightings based on the investor profile set forth in the clients' Investment Policy Statement, but all are structured to capture market returns while minimizing volatility for a specific level of risk through broad diversification.

At QSI, we recognize the importance of having our clients' portfolio strategy match their risk tolerance and return expectations to alleviate some of this uncertainty. The clients' written IPS acts as a map to help guide them toward their toward their financial goals during tough and good market times. Through their written Investment Policy Statement, we can continue to monitor, re-evaluate and track our clients investment experience and make adjustments as needed to keep them on course.

PORTFOLIO CONSTRUCTION

The good things in life are simple, why should investing be any different?

With QSI's core strategies, investors can invest simply without sacrificing sophistication. Constructing a low cost, tax efficient and risk managed core portfolio has never been easier.

A few simple investment decisions can allow one to reach their financial objectives

  • Defining Investor and Account Objectives
  • Structuring a Framework to Measure Success: Recognizing both market and investor behavior
  • Prudent Management
  • Balance and diversification: Essential as a core portfolio strategy
  • Long-Term perspective


An investor's worst enemies in reaching their financial goals are market volatility and human behavior. At QSI, we try to minimize these two investment dynamics through our five-step investment process. With the clients' objectives clearly stated, their risk tolerance and return parameters defined, our investment process enables investors to be more consistent in their investment practices and decisions.

ASSET CLASS INVESTING: 94% of investment return is attributed to asset class. The philosophy of asset class investing is founded on the fact that future market performance is unknown. By building a core strategy utilizing asset class investing and our core approach, Financial Professionals and investors can manage through various market cycles and the life of the account with an efficient portfolio.


EFFECTIVE DIVERSIFICATION: "Don't put your eggs in one basket" - A unique opportunity for investors to benefit from the inherent tax efficiency and low cost of ETF's while gaining a portfolio that is potentially more diversified and transparent.

EFFICIENT FRONTIER: Generates optimal portfolios balancing risk and return utilizing principles of Modern Portfolio Theory as a foundation and then applying tactical management principles.

CUSTOMIZING YOUR PORTFOLIO: IPS defines a strategy for allocation. Melds investor behavior characteristics with market dynamics to create an efficient portfolio that is designed as a core strategy for the life of an account.

EVALUATING RISK & RETURN: Monitor investment strategies & manage expectations.

Where

Efficiency

is everything.

​QSI

ADVANTAGES TO ASSET CLASS INVESTING