CHAPTER 17 Client Discovery

Client discovery is the initial step in the investment consulting process. Investment advisors and consultants must understand exactly whom they serve in order to make appropriate and suitable recommendations. A thorough evaluation of a client's current financial position, risk tolerance, goals and objectives, time horizon, and tax status is required.

This chapter discusses various investment strategies and models with a focus on strategic, tactical, and dynamic asset allocation. Asset allocation strategies are reviewed from a more traditional lens before adding alternative investments to the mix. Active and passive strategies, goals-based and liability driven strategies, scenario analysis, and the importance of economic and capital markets assumptions are all discussed in detail. Spending policy, core and satellite strategies, and total return strategies are also reviewed.

The last reading discusses the taxation of various investments and describes methods to measure tax efficiency before exploring various strategies to minimize or eliminate tax on investment portfolios.

Part I Investments: Principles of Portfolio and Equity Analysis: Portfolio Management: An Overview

Learning Objectives

  • Discuss the types of investment management clients and the distinctive characteristics and needs of each.
  • Describe the steps in the portfolio management process.

Part II Strategic Risk Management: Strategic Asset Allocation

Learning Objectives

  • Explain strategic ...

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