What Makes Etesian Different?
As a smaller investment advisory firm, we recognize that we have an advantage over the larger firms. We have the advantage of personalizing and customizing the service we provide to each client so that every client is recognized as unique. We also differentiate our investment advice. We often find that financial advisors have a limited ability to customize portfolios to efficiently meet the very unique needs clients; therefore a “one size fit all” solution is common. Etesian structures more customized solutions.
Etesian is not motivated to make transactions, chase investment returns, have the largest firm in the Region. We want our service and value proposition to run much deeper for our clients to provide true wealth service solutions that make a difference as our clients navigate a complex financial world.
Our investment processes are specifically designed to construct portfolios using the most efficient and effective tools. We pay strict attention to taxes, and overcome other limitations that may result from the use of passive investment solutions. Etesian’s portfolio construction combines the benefits of ownership of individual equities, mutual funds, and separately managed accounts into an integrated process.
These advantages allow Etesian to cost effectively coordinate services such as rebalancing, tax management and income distributions, which are targeted to the unique risk and reward profile of our clients.
Investment Process
Our Investment process:
We believe that good investment results are unique to each individual and for that reason, focus on your specific risk profile, goals, and objectives. A solid foundation is built around the setting of realistic expectations while insuring consistent monitoring and providing a comprehensive summary of the results.
We focus on a long-range investment strategy built around your specific goals and objectives. We do not limit investment choices and believe that global diversification increases the number of investment options and opportunities while reducing associated risk. Risk and return go hand in hand, so we are intent upon working with you to identify the appropriate levels of risk and margins of safety to meet your goals.
Understanding Goals & Objectives
Our process starts by working with you to establish clear and reasonable goals and objectives, your level of risk tolerance, your liquidity needs, your need for cash flow, and your investment time horizon. We may identify special circumstances that impact these factors and concentrate on your expectations.
"Custom-Fit” steps to achieve goal(s)
We formalize a personalized Investment Policy Statement (IPS) for you that serves as an outline of the duties and responsibilities associated with the investment management of your assets. The IPS details your risk profile, your time horizon, your cash flow needs, and your long-term objectives and details asset classes, how managers will be selected and replaced, how costs will be reported, and how responsibilities will be assigned. As the markets shift, this IPS will guide us through a disciplined rebalancing strategy.
Follow steps over time
We work to implement the investment plan taking into consideration market factors and conditions using all of the options outlined in the IPS. Our portfolio management process includes a strategic asset allocation model providing exposure to various fixed income strategies (government bonds, tax-free bonds, corporate notes and bonds, etc), equities using individual stocks, ETF’s, and mutual funds selected under the guidelines of your personalized IPS.
Assess & review process
The final step in our process is to continually and consistently loop back through steps 1-3. We continually monitor your investments including market conditions, taxes, expenses, and any adjustments necessary to respond to your situation and life changes.
Investment Management Process
Our Investment Management Process
We believe that good investment results are unique to each individual and for that reason, focus on your specific risk profile, goals, and objectives. A solid foundation is built around the setting of realistic expectations while insuring consistent monitoring and providing a comprehensive summary of the results.
We focus on a long-range investment strategy built around your specific goals and objectives. We do not limit investment choices and believe that global diversification increases the number of investment options and opportunities whilereducing associated risk. Risk and return go hand in hand, so we are intent upon working with you to identify the appropriate levels of risk and margins of safety to meet your goals.
WE FOLLOW A FOUR STEP PROCESS
1. Understanding Goals & Objectives
Our process starts by working with you to establish clear and reasonable goals and objectives, your level of risk tolerance, your liquidity needs, your need for cash flow, and your investment time horizon. We may identify special circumstances that impact these factors and concentrate on your expectations.
2. “Custom-Fit” steps to achieve goal(s)
We formalize a personalized Investment Policy Statement (IPS) for you that serves as an outline of the duties and responsibilities associated with the investment management of your assets. The IPS details your risk profile, your time horizon, your cash flow needs, and your long-term objectives and details asset classes, how managers will be selected and replaced, how costs will be reported, and how responsibilities will be assigned. As the markets shift, this IPS will guide us through a disciplined rebalancing strategy.
3. Follow steps over time
We work to implement the investment plan taking into consideration market factors and conditions using all of the options outlined in the IPS. Our portfolio management process includes a strategic asset allocation model providing exposure to various fixed income strategies (government bonds, tax-free bonds, corporate notes and bonds, etc), equities using individual stocks, ETF’s, and mutual funds selected under the guidelines of your personalized IPS.
4. Assess & review process
The final step in our process is to continually and consistently loop back through steps 1-3. We continually monitor your investments including market conditions, taxes, expenses, and any adjustments necessary to respond to your situation and life changes.
Customized client portfolios
Today’s world of investing is very complicated and savvy investors demand the most appropriate processes and techniques. Unfortunately, many financial advisors often find that they have a limited ability to customize portfolios to efficiently meet the unique needs of individual clients. Even when customized investment solutions are employed…
- The processes are complicated where multiple accounts are created, numerous statements are required, and confusing paperwork is a result
- These strategies require spreading a client’s assets among multiple sub-advisors whose efforts are not completely coordinated from an investment, tax, risk management, and reporting perspective.
- There are numerous reports and statements that become confusing.
Etesian separates our investment services by overcoming these obstacles, and allows clients access to the processes and techniques that have most commonly been used by the most sophisticated and large investors. By using the more sophisticated techniques, Etesian believes it is essential that the client have access to understandable information and reports relating to their overall financial planning. Elements of our processes include:
- Specifically designed portfolios using the most efficient and effective tools along with more robust access information for our clients their tax and legal advisors.
- We believe in active portfolio management that pays strict attention to taxes and overcomes other limitations that may result from the use of passive investment solutions like mutual funds and ETF’s;
- Etesian portfolio construction combines the benefits of ownership of individual equities (bonds and stocks), institutional mutual funds, ETF’s, and separately managed accounts in an integrated process.
- This process allows us to design unique portfolios making use of unaffiliated products (separate account managers, individual stocks and bonds, mutual funds, etc.) which are combined into a single reporting protocol that integrates with our financial planning and consulting services.
These advantages allow Etesian to cost effectively coordinate services such as rebalancing, tax management and income distributions targeted to the unique risk and reward profile of our clients.
Global Asset Allocation
Understanding diversification remains key in the investing for your financial future. A well planned diversification strategy will help mitigate your financial risk. Etesian’s investment portfolios are designed to reduce risk by diversifying the portfolios with four distinct strategies:
GLOBAL EQUITY, GLOBAL ALTERNATIVES, FIXED INCOME & CASH
Global Equity Strategies
These are intended to offer several distinct options in satisfying the global equity portion of a portfolio. Global active management is at the heart of our investment philosophy, but there are several appropriate ways to implement the portfolio based on factors such as account size, tax status and client preference. In addition to a traditional portfolio, a Socially Responsible option is available. Portfolio options may include separately managed accounts holding individual stocks, ETFs, or mutual funds.
Global Alternative Strategies
These complement the Global Equity Strategies by introducing alternative investment strategies and asset classes into the portfolio that perform and react differently to the market, thereby increasing diversification and potentially reducing overall portfolio risk. These strategies utilize highly liquid mutual funds.
Fixed Income Strategies
These can act as diversification and capital preservation tools in a portfolio. In addition, they are highly customized to the income and liquidity needs of the investor. These majority of portfolios use individual bonds which allow better control in managing yields, maturities and the volatility caused by changes in the yield curve. A combination of taxable and tax exempt securities are used in most portfolios. This strategy is not limited to any type of fixed income instrument and may include taxable or tax exempt treasury and municipal bonds, corporate bonds, preferred shares and other fixed or floating rate instruments. Mutual funds are also available may also be used to gain exposure to foreign and emerging market bond markets.
Cash Equivalents
These are used primarily as a defensive tool during times of market uncertainty, but will also be deployed as opportunities arise.
Fixed Income
Bonds provide a nice predictable, safe, and reliable income stream that can provide the cornerstone to a well-diversified and balanced portfolio. Having a customizable individual bond portfolio for each client allows us to manage each client’s individual risk tolerance, their specific tax circumstances, and their need for income during the portfolio construction process. Etesian can customize individual bond and fixed income solutions that meet the goals for each client while maximizing the tax benefits that are unique to each individual client.
Bond Ladder
A bond ladder allows you to replicate the total return of a long term bond with less market price and reinvestment risk over each individual’s time horizon. A bond ladder consists of a series of different bonds, each with staggered maturities where a portion of each bond portfolio matures each year. The maturing bonds at the short end of the ladder are then replaced with longer term bonds at the far end of the ladder. This approach allows for a portfolio structure that can be customized to provide income and bond exposure over a predetermined time period or interest rate cycle.
Benefits
This approach also allows you to replicate the total return of a long-term bond with less market price and reinvestment risk over a given time period that is determined by the individual needs of each client. Certain characteristics of your bond portfolio such as the yield to maturity, coupon payments, cash flows, and other characteristics are known in advance as long as you hold each bond in the ladder to its maturity date. The bond ladder combined with an actively managed approach across the equity and alternative investments in your portfolio gives you the added flexibility to meet your retirement and income needs. Each bond ladder that Etesian builds is completely tailored to the individual needs of each client. We take each client’s time horizons, income needs, tax status, and risk tolerance into consideration as we build each client’s individual portfolio. We can build a customized bond ladder for the most conservative investors as well as investors who have special circumstances and income needs. A quick summary of the benefits are as follows:
- Less market volatility over an interest rate cycle
- Each ladder is custom built for each client
- Yield to Maturity, coupon payments, and cash flows are known in advance and can be constructed to meet the needs of each client
- Tax efficient
- Each individual’s risk tolerance, time horizon, and special circumstances can be built into each individual’s bond portfolio
Tax-Free Solutions
Taxes are one of the most important issues that investors face in protecting and managing their wealth. Etesian has the ability to create custom portfolios that make use of specific taxable and tax exempt securities that are most beneficial to your portfolio based on your specific tax situation and your tax jurisdiction. Etesian buys municipal bonds from various municipalities and can construct tax efficient portfolios which are geared towards the needs of Washington, Oregon, and California investors.
Oregon and California Residents
If you’re a citizen of Oregon or California, you know the value of a good tax planning strategy. Federal and State income taxes can eat away as much as 40% of your return on certain types of income producing investments. Having an individual bond portfolio structured to your specific tax circumstances and making use of certain types of municipal securities can go a long way in helping you preserve your hard earned gains and minimize the effects of federal, state, and local taxes on your portfolio. Etesian builds bond portfolios with this idea in mind and helps deliver strategies where the after tax returns that an individual keeps are paramount in constructing each individual’s bond portfolio.