About CapTrust

email Email

Investment
Consulting Process


STEP 1: Analyze Current Position, Establish/Define Objectives and Goals
Analyze Current Position, Establish/Define Objectives and Goals
We analyze a client's current holdings and upon request provide a historical look-back of past performance. This provides a basis for the next step which is to establish/confirm the client's overall objectives and goals.

After analyzing a client's current holdings, we will utilize both strategic and tactical strategies at the point of implementation.

The process in our wealth groups contains additional steps that may include a discovery process consisting of family dynamics, socially responsible investment selections, planning, estate transition considerations and financial tax planning. CapTrust does not prepare legal documents, taxes or give legal or tax advice. We rely on close collaboration with our client’s professionals to provide client peace of mind through this partnership of checks and balances.


Past performance is no guarantee of future results.
STEP 2: Create Strategic Asset Allocation
Create Strategic Asset Allocation
An asset allocation study is conducted after assessing each client’s investment goals, tolerance for risk, performance expectations, and other parameters and constraints. This study determines the optimal exposure a portfolio should have to major asset classes such as stocks, bonds, alternative classes, and cash investments. We believe, asset allocation is the most important decision for determining the portfolio’s potential risk and return.

Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
STEP 3: Formalize Investment Policy Statement
Formalize Investment Policy Statement
Once the asset allocation decision is made, an Investment Policy Statement (IPS) is prepared. This document serves as a game plan for the investment management of the portfolio. The guidelines established in the IPS are based on a thorough understanding of each client’s investment objectives and constraints. The IPS outlines the following:

  • Investment Objectives
  • Asset Allocation Guidelines
  • Risk Tolerance
  • Performance Benchmarks
  • Tax Considerations
  • Investment Return Expectations
  • Manager Selection Criteria
  • Consultant Responsibilities – Client Responsibilities
  • Estate Transition Considerations (Wealth)
STEP 4: Conduct Investment Manager Research and Selection
Conduct Investment Manager Research and Selection
With the parameters outlined in the Investment Policy Statement, CapTrust follows a rigorous and systematic process to identify suitable investment talent to construct the portfolio. Our research and analysis draws from a universe of institutional and other investment managers. 

We screen from databases with a broad range of domestic and global investment managers. Our quantitative and qualitative analysis examines the following key areas with each manager:

  • Organizational Structure
  • Portfolio Management Team
  • Investment Process
  • Investment Style
  • Performance
  • Relative Risk
  • Marketing/Client Service
  • Trading and Operations
STEP 5: Implementation of Investment Strategy
Implementation of Investment Strategy
After managers are positioned based on the IPS, investment performance is carefully monitored. This accountability is vital to determine if the client’s goals are being achieved. Summary reports are produced, at a minimum, quarterly. They concisely show performance and asset valuation of each managed account individually and the portfolio in aggregate. Returns are time-weighted and annualized as appropriate. Where applicable, benchmark index and peer group returns are also presented.

STEP 6: Ongoing Performance Measurement and Due Diligence
Ongoing Performance Measurement and Due Diligence
To build upon our portfolio monitoring for each client, investment performance for all managers is reviewed. A detailed portfolio analysis and performance style analysis for each manager may be produced and reviewed quarterly. In addition, our process includes a review of holdings to assure that they reflect the client’s Investment Policy Statement requests. Our research team conducts periodic investment manager reviews via the appropriate effective medium, in-office or on-site.