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Investment Management

Investment management clients are in the fortunate position of having accumulated funds they wish to preserve and grow. Whether clients hold funds within IRA accounts, 401(k) accounts, or after-tax savings or inheritances, they all share the same characteristic: they want professional management of their financial nest-egg to help give them the ability to experience security, freedom, and leisure.

The client is guided through a careful and conscientious process of evaluating his/her goals, objectives, risk comfort, and any special factors that should be considered. For each client an Investment Policy Statement (“IPS”) is constructed. The IPS states our mutual understanding of the client’s situation, investment objective, risk tolerance, cash flow needs regarding funds under management, tax considerations, and any special circumstances considered. The IPS also includes the fundamental game plan: the asset allocation plan for the client. To a new client, this helps answers the question: “How will my account be managed”?

With the IPS “game plan” in mind, the advisor assumes responsibility for selecting appropriate investments for the client accounts. Our clients find it reassuring that the person responsible for managing their investments does not sell a product or receive a commission. We utilize a variety of investments which include, but are not limited to; publicly traded no-load mutual funds, Exchange-Traded Funds (ETFs), investment-grade bonds, Real Estate Investment Trusts (REITs), government and corporate bonds and CDs or diversified funds investing in these and other bond-related investments.

Client assets are registered in the name and address of the client, never co-mingled with other client assets. Statements are received by the client directly from the account custodian. Our firm provides quarterly statements that include our newsletter, easy-to-understand statements of account values, a pie chart showing how the accounts are allocated, and a copy of a billing statement to show the exact amount of the fee (normally withdrawn from the managed accounts).

Performance results are provided to all investment management clients at the end of each calendar year. Results are stated net of management fees and compared to an index appropriate to the client’s account.

We normally conduct a review meeting with the client annually.

Steps in the process

Step 1. Identify investment objectives

Step 1. Identify investment objectives

Several factors determine whether you will want to invest for growth, income, or a combination of the two. These factors may include age, other income sources and personal net worth, desire for income, the desire to achieve specific goals (for example college funding or retirement), and the size of your investment pool of funds.

Step 2. Identify investor constraints

Step 2. Identify investor constraints

Investor constraints include risk comfort level, the length of time the money will be invested, need for cash availability ("liquidity"), tax considerations, income required from investments, socially responsible investment considerations, and any other personal guidelines and preferences.

Step 3. Determine initial asset allocation

Step 3. Determine initial asset allocation

Though the nonprofessional investor is many times not well versed in this area, studies have shown this step determines over 90% of the return of your investments. This step sets an initial division of the investment pool into appropriate categories of investment alternatives such as stocks, bonds, money market, and international investments.

Step 4. Specific investment selection

Step 4. Specific investment selection

Next the specific mutual funds and/or individual stocks are selected for investment. This begins the actual execution of the investment plan.

Step 5. Ongoing management

Step 5. Ongoing management

Whether an investor is conservative or aggressive, ongoing monitoring and adjustment of the investment portfolio is important. Changes in investment objectives, the climate of the markets, imbalances in the portfolio, and review of the investments owned are just a few factors requiring ongoing management.

Step 6. Reporting and communication

Step 6. Reporting and communication

Quarterly reports and a special year-end report are sent to each investor. The quarterly report offers a complete statement of investment positions and value of the client's account as well as an informative newsletter sharing the portfolio manager's observations about the previous quarter and the outlook for the near future. The special year-end report presents the performance realized in the account net of all management fees and transaction costs. In addition, complete income tax reporting information is provided to make tax reporting an easy task.

Getting started

As noted in the investment management overview, we have a thorough but helpful process that enables both the client and the advisor to determine the best approach to take in the management of client investments. For new clients who are as yet unsure of the service to select, we offer a free introductory “get-acquainted” meeting.

The process starts with the client bringing in current account statements to identify not only the assets to be managed, but also how those assets fit into the client’s overall financial holdings.

The client normally receives a personal presentation that reviews the historical relationship between investment risk and return. This helps build a common understanding and foundation for account management.

The advisor and administrative assistant will assemble for client signature any required paperwork to open accounts, transfer assets, grant trading authority, and the like. Once this initial paperwork is completed, the wheels are set in motion and client responsibilities are reduced to reviewing monthly reports and quarterly statements, and asking any and all questions he or she may have. Clients can elect to receive monthly account statements and trade notifications electronically if this is preferred.

Questions are always welcomed! We always like to talk to our clients!

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How to Contact Us

Have a question for us? We would love to hear from you. Stop by our office or call and chat with us if you have time. If you would prefer, you can email or contact us through this website.

Contact Info

  • Limoges Investment Management PC
  • 10000 NE 7th Ave, Suite 205
  • Vancouver, WA 98685

Contact Details