To accomplish full portfolio accountability, there needs to be a clear understanding of performance benchmarks and risk metrics as outlined in the policy statement. WealthStone Armada creates a customized policy statement that solves for the following:
Encourages blending of multiple advisor “Investment Philosophies.”
Creates a universal set of portfolio instructions applicable to each advisor.
Creates one common investment "language" for all portfolio investments.
Sets realistic portfolio return expectations based on the Investment Policy Statement.
Establishes a portfolio "risk budget" for all advisors that focuses on risk-adjusted returns.
Results in maximum advisor accountability by using the "Policy Benchmark" to measure the success of total portfolio returns.
Provides thoughtful portfolio constraints such as liquidity, spending policy etc.