Wealth Management

Wealth Management and Investments.

Unlike most firms whose business units are entrenched in individual silos, World Equity Group New Jersey integrates its planning and investment disciplines. Investments are an integral part of the planning process, and our plans impact any investments we consider. By working together, we can harmonize strategic and tactical advantages, long-term and short-term objectives, and each of our client's planning and investment requirements.

A holistic approach.

We review your entire financial plan so that we can properly analyze your investment portfolio prior to making any recommendations. We take into consideration your objectives, your overall view of risk, and the breakdown of your qualified and non-qualified assets to provide an independent analysis of your investment portfolio. We consider all your assets - both those under our management and those that are not - to help ensure your wealth is fully coordinated.

Assets are consistently monitored.

Our strategic allocation uses core managers that can actively move monies. Many mutual fund and ETF portfolios are static, meaning once investments are made, there is no active movement of those assets. Our portfolios, on the other hand, are consistently monitored and reviewed to help protect against turbulent markets or to take advantage of opportunities when they happen.

Strategies that protect.

We believe in having fixed income exposure and non-correlated asset classes in a portfolio as well as implementing various hedging and tactical strategies. By incorporating these strategies, overall downside capture can be reduced and outperformance can be achieved by taking advantage of opportunities in the markets.

Active and passive management.

For years, asset management firms have debated the merits of active vs. passive investing for their clients' assets. We utilize a combination of both money management styles in order to create the optimal portfolio for our clients. Our research and experience has demonstrated to us that only certain market segments can truly benefit from active management. For asset classes that do not provide an active money manager enough opportunity for outperformance, we use passive managers. Passive money management tracks a relative benchmark at a lower cost than an active manager and helps create more tax efficiency throughout the portfolio. One thing that is problematic with a passive only investment style is its difficulty in avoiding downside in bad markets. By combining these styles we are able to create portfolios that are more conscious of fees and taxes, while allowing our active overlay to protect downside and achieve Alpha.

Wealth Management (portfolio evaluation, construction & management):

  1. Assessing the most common risk, an inappropriate asset allocation, confronting wealth given your short, intermediate and long term financial objectives, risk tolerance, tax bracket and over all “feelings”regarding wealth management.

    1. Exploring various risk reward models in order to identifying the most appropriate asset allocation (risk / reward relationship) in the context of the following:

      1. Historical “average annual” returns.

      2. “Best and worst case” historical performance scenario’s (three month, one year & three year)

      3. Historical drawdown and recovery periods.

      4. Historical volatility as measure by “Standard Deviation.”

      5. Historical risk as measured by “Beta.”

      6. Portfolio correlation as measure by R-squared

      7. Portfolio Alpha.

  2. Assessing the second most common risk, an inappropriate inter-relationship, confronting wealth.

    1. Minimizing “overlap” as it pertains to sector exposure.

    2. Minimizing “overlap” as it pertains to industry exposure.

    3. Minimizing “overlap” as it pertains to individual holding exposure.

    4. Ensuring appropriate style (value / growth / core) exposure as it pertains to the equity components of your portfolio.

  3. Assessing the third most common risk, utilizing inappropriate investment vehicles, when adopting “an agreed upon” portfolio:

    1. Minimizing “style drift.”

    2. Maximizing “tax efficiency.”

      1. Exchange Traded Funds (ETF’s)

        • Index Weighted

        • “Quant.” Based

      2. Mutual Funds

      3. Separately Managed Accounts

      4. Individual Stocks

      5. Individual Bonds

      6. Private REIT’s

      7. Public REIT’s

        Note: Clearly the choice of investment vehicles is not limited to those referenced immediately above.

  4. Ensuring “quality of investment:”

    1. Initial and an on going examination of peer group comparisons

    2. Initial and an on going examination of index comparisons

    3. Initial and an on going examination of risk reward metrics (beta, standard deviation, market correlation, etc.)

  5. Ensuring a well defined and disciplined investment philosophy.

    1. Decisions must make sense “fundamentally, technically and quantitatively”

    2. The wealth management process must be consistent, methodic and disciplined.

    3. The platform used to maintain the portfolio must provide the flexibility to respond to changes in the economic environment, investment environment and financial “needs.”

The Investment Policy Statements reflect the current and future needs of the organization and make necessary changes accordingly.  Contact us today to schedule a consultation.  732.223.8505

 

 

 

Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck