Presentation is loading. Please wait.

Presentation is loading. Please wait.

Park Avenue Securities Investment Advisory Services Quantitative Innovations.

Similar presentations

Presentation on theme: "Park Avenue Securities Investment Advisory Services Quantitative Innovations."— Presentation transcript:

1 Park Avenue Securities Investment Advisory Services Quantitative Innovations

2 GEAR # Key Terms Defined Risk – The chance of an event different from what one expects. Risky Asset – Any asset that commands a risk premium above the yield of a T-Bill. Asset Class – Broad classifications of investment opportunities with similar capital structures and/or characteristics. Risk Tolerance – The compilation of an investors ability to accept risk to achieve a required return given a specific time horizon and investment amount. Asset Allocation – The process by which multiple classes risky assets are utilized within a portfolio to achieve a specific risk/return objective. Exchange Traded Fund (ETF) – A collection of securities assembled to mimic the return of a specific index or benchmark (traded and priced intraday on an exchange)

3 GEAR # Initial Roles and Responsibilities Investor Define Investment Goals and Time Horizon Define Reasonable Expectations Review Recommendations Update on any Changes that may Influence Investment Goals Park Avenue Securities Advisor Help Client Define Investment Goals and Risk Profile (Expectations) Team with PAS to Develop a Portfolio With Clients Specific Goals in Mind Review Recommendations Park Avenue Securities Investment Advisory Services Team Team with Advisor to Develop a Portfolio With Clients Specific Goals in Mind Monitor Models and Assumptions Provide Insight and Research to Support Decisions Provide Quarterly Performance Reports & Rebalancing

4 GEAR # Process of Disciplined Investing Investors Process Investment Advisors Process Interpret and Quantify your Risk Tolerance Listen Your Goals Objectives Time Horizon Help define the best asset allocation solution Assist you in managing your ongoing expectations Assist the Evaluation of your Portfolio Define Your Investor Profile Realistic look at expectations and an unemotional appraisal of the ability to accept risk in order to achieve a desired outcome Select the Right Asset Allocation Strategy Evaluate Your Portfolio

5 GEAR # What is Diversification? Spreading your assets among a number of different investments in an effort to reduce the risk of an excessive loss in any one security.

6 GEAR # Uncertain Markets The Only Certainty About the Markets is That They Are Uncertain The indices listed herein are unmanaged indices. Individual Investors cannot invest in these indices. Source: Callan Associates

7 GEAR # Do These Companies Sound Familiar? American Cotton Oil American Sugar American Tobacco Chicago Gas Distilling and Cattle Feeding General Electric Laclede Gas National Lead North American Tennessee Coal & Iron US Leather Preferred US Rubber

8 GEAR # How Does Quantitative Innovations Account For This? Diversification and Asset Allocation are Key By concentrating on asset classes rather than individual equity or debt securities we ensure that the active risk associated with your portfolio is not dominated by a single position We strive to understand the risks and potential rewards inherent of each asset class as well as how they interact with others, i.e. correlation Volatility is Important Valuations are Most Important We seek opportunities in asset classes that are undervalued We work to invest in asset classes that provide favorable opportunities on a forward-looking basis Only purchasing asset classes that have already done well versus their peers creates whipsaw risks Chasing performance is a zero-sum game and can detract from ongoing results Market Timing is Destructive We are Investors, not Speculators

9 GEAR # Portfolio Construction Attempt to Build Portfolios that Maximize Return Per Unit of Risk Within Designed Parameters

10 GEAR # Portfolio Construction Evaluate and Adjust Asset Allocations, on a Forward-Looking Basis, to Gain Exposures to Potentially Beneficial Sub-Asset Classes. *Source: Financial Analysts Journal, May/June Due to rounding, figures may not equal 100%

11 GEAR # Portfolio Construction Selecting Fund Managers Selecting the ETFs

12 GEAR # Combining Passive and Active in One Strategy By maintaining an active or tactical outlook via Quantitative Innovations we look to maximize the return per unit of risk We are able to exploit the most attractive opportunities in various asset classes with the most appropriate vehicle Quantitative Innovations is a marriage between the two often divergent investment philosophies in the marketplace today…Active and Passive Benefits of combining ETFs and Mutual Funds ETFs are inherently tax efficient Low Turnover Investors own trading activity generates capital gains or losses ETFs have low expenses relative to other investment vehicles allowing investors to potentially save significantly on internal expenses over a long- term investment horizon For Financial Advisor Use Only in One on One Presentations with Sophisticated Investors

13 GEAR # A Three-Pronged Approach Standard Models (Hybrid Solution) Designed for qualified assets or situations where an investor does not have specific tax considerations The account may contain a robust mix of active mutual funds and ETFs Tax Sensitive Models (Hybrid Solution) Designed for non-qualified assets The account may contain a robust mix of active mutual funds and ETFs ETF-Only Models Designed for qualified or non-qualified assets All asset class assignments will be filled with Exchange Traded Funds

14 GEAR # Monitoring the Portfolio… An Ongoing Partnership Investor Re-evaluates risk tolerance and expectations Reviews Account and Quarterly Performance Notify Advisor and PAS Concerning Any Changes in Risk Tolerance and/or Time Horizon (Goals and Objectives) Park Avenue Securities Financial Advisor Help Client Manage Ongoing Expectations and Goals Maintain Ongoing Dialogue with Client and PAS to Ensure Prudent Management and Allocation Monitor Portfolio and Interpret Any Changes to the Portfolio Review Recommendations Park Avenue Securities - Investment Advisory Services Team Team with Advisor to Develop a Portfolio With Clients Specific Goals in Mind Monitor Portfolio Make Recommendations to Change ETFs or Allocation When Research Would Suggest Provide Quarterly Performance Reports & Rebalancing as Necessary

15 GEAR # Client Implementation Process Complete the Client Questionnaire Generate a Proposal Based on the Results From the Clients Questionnaire Review the Proposal Implement the Portfolio We value your trust and confidence and thank you for the opportunity to serve you

16 GEAR # About PAS/Guardian About Park Avenue Securities LLC Park Avenue Securities LLC is registered with the Securities and Exchange Commission as an investment adviser and broker dealer. Park Avenue Securities is located at 7 Hanover Square, New York, NY and 81 Highland Avenue, Bethlehem, PA Park Avenue Securities LLC is an indirect wholly owned subsidiary of The Guardian Life Insurance Company of America, a mutual company founded in Guardian has earned consistently high ratings from independent agencies such as Standard & Poors, Moodys Investor Services and A.M. Best Company. Park Avenue Securities is a member NASD, SIPC. About The Guardian Life Insurance Company: A mutual insurer founded in 1860, The Guardian Life Insurance Company of America and its subsidiaries are committed to protecting individuals, business owners and their employees with life, long term care insurance, disability income, group medical and dental insurance products, and offer 401(k), annuities and other financial products. Guardian operates one of the largest dental networks in the United States, and protects more than six million employees and their families at 120,000 companies. The company has more than 5,400 employees in the United States and a network of over 3,000 financial representatives in more than 80 agencies nationwide.

17 GEAR # Past performance is no guarantee of future results. Please note that investments in foreign markets are subject to special currency, political, and economic risks. ETF Managed Solutions performance results do not reflect management fees or expenses. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable but should not be assumed to be accurate or complete. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer or recommendation to purchase or sell a security. Joseph Capone is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS), 7 Hanover Square, New York, NY 10004, Securities products/services and advisory services offered through PAS, a registered broker-dealer and investment advisor. OmniMed Financial & Insurance is not an affiliate or subsidiary of PAS. PAS is a member FINRA, SIPC. Disclosures

Download ppt "Park Avenue Securities Investment Advisory Services Quantitative Innovations."

Similar presentations

Ads by Google