Our wealth management services are more comprehensive than our financial planning services. For wealth management clients, we integrate comprehensive financial plan development with ongoing portfolio management and financial plan implementation.
This service typically begins with the development of a financial plan or by addressing a customized subset of planning issues. The investment strategy is then codified in an Investment Policy Statement (IPS) and we implement the strategy by managing the assets on a discretionary basis. All assets are held at our custodian, Fidelity Investments, which provides regular monthly account statements directly to the client.
Quarterly, our wealth management clients receive a detailed performance report, which consolidates and analyzes the performance of their investments across all of their accounts. Annually, we conduct a comprehensive financial planning and investment portfolio review to evaluate and adapt the overall strategy and address any new financial planning needs.
Our Investment Philosophy
Investment management offers three potential sources of excess return: gains from asset allocation, gains from market timing, and gains from security (or sector or manager) selection. Of these three, asset allocation is the most important and reliable source of long-term excess return. Hence, at Artemis, we focus primary attention on achieving the optimal mix of assets for our clients, reflecting their long-term investment goals and risk tolerance, and our view of market opportunities. Our asset allocation strategies are built upon a foundation of clear investment goals, diversification of risk, value-based investing and efficient execution.
Clarity of Investment Goals.It would be impossible for us to select the right assets for our clients without first gaining a clear understanding of their overarching financial goals. Given an initial asset base and assumed annual rate of savings, we determine what rate of return is needed on the investment portfolio to achieve a client’s goals – or whether their spending, saving and retirement plans may need to be adjusted. We also devote considerable time understanding our client’s tolerance for investment risk. These are critical determinants of a suitable investment strategy. We develop an Investment Policy Statement (IPS) that clearly defines how investments will be allocated across different asset classes.
Diversification of Investment Risk. Artemis Financial Advisors draws upon a wide investment opportunity set, including stocks, bonds, real estate, and commodities. We believe that one key to achieving higher risk-adjusted returns is pursuing investment opportunities throughout the world, and across market segments. We believe that effective diversification means not only allocating capital across a wide range of asset classes, but also across economic and market risk factors, which are distributed in varying proportions across asset classes.
Dynamic Asset Allocation. At Artemis, we monitor the relative performance and valuation of various asset classes against a changing global economic backdrop. We make dynamic allocation decisions based on perceived opportunities and risks across investment domains, taking into account changes in market conditions, valuation parameters, and the potential tax consequences of any reallocation decisions.
Opportunistic Rebalancing. Portfolio rebalancing involves trimming investments in those asset classes that have performed well, and adding exposure to asset classes that have underperformed. Disciplined rebalancing results in a consistent pattern of “buying low” and “selling high”, reducing the volatility of a portfolio while increasing the long-term rate of return. We make rebalancing decisions opportunistically, typically 1-2 times per year, when allocations have moved materially away from target.
Efficient Execution. We are scrupulous about managing investment transaction costs and maximizing tax efficiency. In addition to utilizing low-expense, tax-efficient funds, we pay close attention to ‘tax location’; i.e. optimizing our client’s investments across their taxable and tax-deferred portfolios to minimize liabilities. We don’t hesitate to utilize tax-loss harvesting techniques to offset other capital gains as appropriate.