Investment Management Services
We begin with a detailed discussion of your long-term financial goals and priorities. During the discussion we may consider a wide range of topics, including retirement needs, stock options and other executive compensation issues, concentrated low-basis stock positions, charitable giving, family wealth transfer concerns and 401(k), IRA and other retirement plan issues.
Out of this discussion we craft a practical statement of your goals and document an investment strategy linked to those goals. The resulting Investment Policy provides a framework for our management of the portfolio and describes the asset allocation strategy for your portfolio, types of investment vehicles to be used, and range of historical returns for similarly constructed portfolios.
Our portfolio designs are based on the well-established principles of Modern Portfolio Theory (MPT) and use equity, fixed income and alternative asset classes to create diversified portfolios.
In order for HTG to manage your portfolio, you must delegate the selection of investment vehicles to us. We use open and closed end mutual funds, ETFs, separately managed accounts and selectively, hedge funds, to construct our diversified portfolios. We screen and select funds based on a variety of criteria including performance, suitability, cost, tax efficiency, and manager experience. Since we are institutional investors, we have access to funds that are not available to the general public. Given our size, we are able to negotiate for lower transaction fees that benefit our clients.
Your assets reside at a separate custodian (e.g. Charles Schwab, Fidelity or TIAA/CREF) and HTG manages your account by communicating with the custodian. You continue to receive communications from the custodian on all activity in your accounts. We assist in setting up the accounts at the custodian and handle most administrative functions for you.
We monitor your portfolio closely, making adjustments when appropriate. We provide you with a written, quarterly report that includes a quantitative summary of your portfolio's overall performance and the performance of the individual holdings. We contact you periodically to discuss current asset allocations, potential reallocations, and strategic issues relevant to your changing needs.
We track all cost information on investments purchased by us. We also make every effort to track the same information on investments you purchased previously. At your (or your accountant's) request, we will provide investment gain/loss data on your taxable, non-retirement accounts. The custodian will provide all necessary tax documents. We receive duplicate copies of all tax reporting documents.
In addition to the customized materials we provide, we send you a newsletter with timely articles on a variety of investment topics, events, and updates. You also have access to our website.
Our fee structure is based on the value of assets managed. To align our interests, our compensation comes solely from advisory fees paid by our clients, which consists of a fixed fee and a percentage of assets under management. We do not receive any other compensation from any other source.