Portfolio Management

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Portfolio Management

The management of investment portfolios is a sophisticated professional endeavor. It is both an art and a science. It is much more than the application of a formula to a set of data input from security analysts. It’s a dynamic decision-making process, one that is continuous and systematic but also one that requires large amounts of astute managerial judgment.

For clients interested in a professionally managed portfolio across the international arenas, we offer separately managed accounts through our licensed investment advisory firm, Delta Capital Management, LLC. A managed account allows for the transparency of a traditional brokerage account, while offering turnkey access to a diversified portfolio of international positions. A managed account is an investment account owned directly by you, the individual investor, yet professionally looked after by our investment team. This contrasts to a traditional international mutual fund in which an investor holds a share of a pooled fund of monies. In our separately managed accounts, account holders own the underlying securities, allowing for additional personalization and transparency of the portfolio management process.

We greatly appreciate you purchasing Investors Passport and feel it’s a tremendous tool to help an investor craft a truly international portfolio. That said, some investors simply don’t have the time to manage their portfolios and even carefully crafted portfolios can’t run themselves. We are investing in ever-changing capital markets, thus changes will always need to be made. Investment managers are not architects, who erect a structure then leave its denizens to their own devices. Instead, they reside with the client, making revisions when circumstances demand it.

Change is the only true constant, working inexorably to alter client circumstances, market risk attributes, and securities’ return prospects. The continual charge of Delta Capital Management is to monitor these global changes and respond by rebalancing portfolios to accommodate them.

In our managed accounts, we believe that a consistent money management approach produces the best long-term results across the broad risk-and-return continuum. Therefore, we adhere to strong investment discipline even in the face of today’s ever-changing and uncertain markets. Our investment objective is to maximize the after-tax return over our clients’ portfolio lifespan while assuming a reasonable risk.

Much like you saw in the book, our investing style focuses exclusively on leading industries and companies in strong markets around the world. We are not interested in second-, third- or fourth-tier companies that may be “the next Microsoft”. From our perspective, changes in the markets’ risk attributes or in return prospects for individual investments may also lead us, as your portfolio manager, to act. Under this type of scenario, there are three primary types of revisions we would look to make in the portfolio:

1.  We may adjust the asset mix by selling overpriced or over weighted countries/sectors/stocks and reinvesting in others.
2.  We may alter investment emphasis within sub portfolios. Two examples are changing the duration (or variability/aggressiveness) in a fixed-income sector or adjusting the style (growth vs. value) of the equity portfolio.
3.  Finally, our incentive may simply be to upgrade a country/sectors/stock for one that seems to offer better value.

Fees

With our managed accounts, the compensation incentives are in the right place. As an advisory firm, we are concerned with the growth of your portfolio and the protection of your assets. We work directly for you, the investor, and receive no fees from any other source. Simply stated, when you benefit, we benefit. We both have a vested interest in the growth of your portfolio. As such, you can rest assured that any transactions we make are in an effort to improve portfolio returns. Compare this incentive to a traditional broker. Their incentive is to make transactions because that’s how they get paid. Your investment professional’s motivation should be to make your assets grow, not to complete transactions.

Delta does not receive any benefits from commissions on the sale or purchase of securities. Further, as your advisor, we are empowered to negotiate discounted commissions on your behalf with our account custodians.

- Unlike many firms, Delta does not impose a minimum term to our relationship. We feel that clients should only be tied to us by continuing satisfaction and market performance. We realize that any advisory relationship is a “leap of faith”. Our intent is to keep you as a long-term client thru unprecedented service and outstanding investment returns.

- Management fees, for the purpose of producing income are deductible for Federal Income Tax purposes when combined with other miscellaneous business expenses in excess of 2% of adjusted gross income. This may reduce the net cost of our service to the client. Please consult your tax professional.

Our clients are provided with many value-added services free of charge. These services include, but are not limited to:

- Online Account Access
- We are able to manage multiple types of accounts including brokerage accounts, Trust accounts, traditional IRA’s, SIMPLE IRA’s, SEP IRA’s and ROTH IRA’s, plus many more.
- Automatic Money Market Sweeps
- Optional Debit Card and Check Writing Privileges (non-qualified accounts)

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