THE CLIENT
The first step in the portfolio management process is to meet with the client. It is essential that the portfolio managers have a clear picture of the client's investment objective and if there is an income requirement to be considered. Additionally the portfolio managers need to be aware of any restrictions or constraints, such as tax issues, which need to be considered. The goal from the outset is to ensure that the correct portfolio structure is put in place for the client. We believe this is the most critical point in the relationship, so that the expectations and responsibilities of all parties are established and any restrictions or potential tax issues are identified in order to ensure a smooth and beneficial relationship.
THE PORTFOLIO STRUCTURE
Once the portfolio manager has a clear view of the client and their requirements, the portfolio construction process begins. The first step is to establish what the base currency is going to be, with the goal of minimizing foreign exchange risk. The next step is to decide the appropriate asset classes to include in the portfolio and the appropriate weightings for these asset classes given the long term goals and income needs of the client. It is within this step that the portfolio manager confirms his knowledge of the client's needs and requirements. Once this step is completed, there is a strong strategic framework established for the portfolio manager to operate within. This framework is then delineated within the portfolio guideline document which is ratified by the client and Granaway.
THE MARKETS
The next step in the portfolio management process is to take the strategic portfolio structure and adapt it to the current market environment. The portfolio manager will take the information and research generated by the team and use this to come up with a tactical view and tactical positioning for the portfolio. It is at this point that it will be decided if portfolios should be overweight or underweight asset classes, geographic regions or sectors - all the time keeping in mind the strategic view of the client.
PORTFOLIO REPORTING
On a formal basis Granaway will generate quarterly performance reports. These reports will look at portfolio performance on an overall basis, relative to their respective benchmark. Meetings to discuss such performance documents will be scheduled at the convenience of clients, though quarterly to semi-annual meetings are suggested. In addition to these scheduled meetings, the portfolio managers are available at all times to discuss the markets and give interim performance updates upon the client's demand. Clients will receive monthly reports and trade confirmations directly from their custodians giving them an additional layer of security with regard to their portfolios.
THE CLIENT
The final step in the process takes us full circle back to the start of the process. In order to provide a superior investment product, it is essential that Granaway keeps up to date records on clients needs and any changes in their lives, which may affect the requirements for the portfolio. Therefore, on a formal basis, portfolio managers will review with clients the strategic guidelines for the portfolio at least every three years. Commensurate with this, should there be anything which changes in the client's lives, Granaway's portfolio managers are there to support the client and make sure the appropriate changes are made to the portfolios to adapt them to the new environment or requirement.