Asset Management

What is Asset Management?

Foggy pondSimply said, Asset Management refers to the management of investments on behalf of others. The process essentially has a dual mandate – grow the client’s assets over time while mitigating risk. The role of an asset manager consists of determining, through rigorous research, what investments to make, or avoid, that will grow a client’s portfolio and align with their goals and objectives.

Various legislation over the years has raised the bar in the quality expected of those managing assets for clients. Some advisors, like My Legacy Group, have naturally followed an integrity-based approach, however Investment Advisor Representatives* are fiduciaries for their clients. This means that retirement accounts must be invested using the Prudent Man Rule (PMR). This rule, in short, says that advisors are not do anything for a client that they would not do for themselves or their loved ones, directing them to be thoughtful and conscious of the client’s circumstances as they plan investment strategies.

*Registered Investment Advisors and Investment Advisor Representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interests of our clients and to make full disclosure of any conflicts of interests, if any exist. Please refer to our firm brochure, the ADV 2A page 4, for additional information.

One of our primary goals is to develop a long-term, trusting relationship with you.

The Prudent Man Rule (PMR) is a component of Modern Portfolio Theory or (MPT) which is a theory on how portfolios can be constructed for risk-averse investors to maximize expected returns based on a given level of market risk. MPT can also be used to construct a portfolio that minimizes risk for a given level of expected return. Modern portfolio theory is very useful for investors trying to construct efficient portfolios using ETFs.

To implement MPT the client must complete a risk profile that determines their risk tolerance. Their advisor then creates an investment strategy, across account types, that adheres to the rule of creating growth while minimizing risk to the level that the client is comfortable with.

This is the same investment philosophy used across the country for pension plans, endowments and other institutional money being managed for employees.

How Can We Help You Today?

Weston Office

1555 Bonaventure Blvd.

Weston, FL 33326

Phone: (954) 303-4647

Mon – Fri: 8:00AM – 5:00PM

Sat-Sun: By Appointment