Investment Process
The COIN investment process consists of four steps that result in an initial investment strategy and portfolio allocation. Yearly consultations with your portfolio manager ensure that your investment strategy remains on track to meet your goals even as market conditions and financial needs change over time. At COIN, we take a consultative rather than a sales-oriented approach with our clients. This attitude is apparent from the initial consultation where we discuss the prospective client’s financial goals and investment expectations and clearly explain COIN’s services and investment management philosophy. Only then can we decide together whether COIN’s services are a good fit for the prospective client’s needs.
The COIN investment process consists of four steps that result in an initial investment strategy and portfolio allocation. Yearly consultations with your portfolio manager ensure that your investment strategy remains on track to meet your goals even as market conditions and financial needs change over time. At COIN, we take a consultative rather than a sales-oriented approach with our clients. This attitude is apparent from the initial consultation where we discuss the prospective client’s financial goals and investment expectations and clearly explain COIN’s services and investment management philosophy. Only then can we decide together whether COIN’s services are a good fit for the prospective client’s needs.
1. Understanding your specific situation
Gathering information on your resources, investment goals and constraints, and non-financial as well as financial objectives sets the stage for an appropriate investment strategy. This information is used to derive an understanding of your investment time horizon, your knowledge and comfort level with respect to various investment products, and your tolerance to risk as it relates to expected portfolio return.
2. Formulating an investment strategy
By understanding your specific situation, and through in-depth knowledge of investment strategies and products, your COIN portfolio manager ensures that the selected strategy will be customized to your needs and thoroughly discusses and explains the investment strategy and products that we recommend.
This step transforms the information gathered in step one into the language of the financial world and culminates in a customized Investment Policy Statement (IPS). The IPS summarizes your portfolio strategy and is COIN's guarantee that your portfolio will be invested in keeping with agreed-upon guidelines. Each year your portfolio manager will review your IPS with you to determine whether changes are required, perhaps because of changing market conditions or changes in your investment goals.
3. Implementing your investment strategy
Your Investment Policy Statement will indicate a preferred asset allocation and constraints on certain types of investment products and strategies. In step three, your COIN portfolio manager will use this guidance to allocate your portfolio appropriately amongst individual holdings. From time to time, your portfolio manager may make changes to these holdings as market conditions warrant, but any changes will always be in keeping with the strategy that was agreed to in your IPS.
Your Investment Policy Statement will indicate a preferred asset allocation and constraints on certain types of investment products and strategies. In step three, your COIN portfolio manager will use this guidance to allocate your portfolio appropriately amongst individual holdings. From time to time, your portfolio manager may make changes to these holdings as market conditions warrant, but any changes will always be in keeping with the strategy that was agreed to in your IPS.
4. Monitoring your portfolio
Ongoing monitoring of your investments by a COIN portfolio manager ensures that there is always a knowledgeable professional looking after your best interests. Periodic changes are needed as the prospects for your individual holdings change with time and market conditions. It is equally important to understand how your portfolio is performing both with respect to your expectations and in comparison to appropriate benchmarks. COIN provides quarterly updates on your investments and a yearly in-depth portfolio review. In the yearly review, your portfolio manager will present a comparison between the performance of your investments and a benchmark which was pre-selected in your Investment Policy Statement. This comparison clearly shows how much value COIN's portfolio management has added over the year and how that value was added. In addition, we also compare your yearly results with your long-term return expectations to determine if you remain on track to meet your investment goals or if changes in strategy are required.
Ongoing monitoring of your investments by a COIN portfolio manager ensures that there is always a knowledgeable professional looking after your best interests. Periodic changes are needed as the prospects for your individual holdings change with time and market conditions. It is equally important to understand how your portfolio is performing both with respect to your expectations and in comparison to appropriate benchmarks. COIN provides quarterly updates on your investments and a yearly in-depth portfolio review. In the yearly review, your portfolio manager will present a comparison between the performance of your investments and a benchmark which was pre-selected in your Investment Policy Statement. This comparison clearly shows how much value COIN's portfolio management has added over the year and how that value was added. In addition, we also compare your yearly results with your long-term return expectations to determine if you remain on track to meet your investment goals or if changes in strategy are required.