Asset Management

You have individual goals, objectives and expectations for your investment portfolio—and for your experience with your advisors. We believe there are a couple of key factors that will help make your asset management experience at Sequoia substantially different. We offer a relaxed, low-pressure environment because our advisors are salaried—not commission-based—professionals. We also do not work with proprietary products. Our unique structure enables us to select from a wide range of investment solutions to determine which are appropriate for you and your asset allocation strategy. Our recommendations are based on what is best for your particular situation and risk tolerances, not ours.

We believe that how investments are allocated between different types of asset classes is one of the most important factors in a portfolio’s performance. Strategic asset allocation helps provide diversification and better resilience to market volatility, as the movement of individual positions has less effect on the overall performance of the portfolio.

Investment selection and performance comprise only half the battle. You also need advisors who help you implement and monitor the investment strategy and its performance. The five-step investment management process below details how we help you work towards achieving your financial goals as they relate to asset management.

Process

Understand

Whether it is through a personal financial plan or personal meetings, each Sequoia advisor gains a thorough understanding of your personal objectives and tolerances before making any portfolio recommendations.

Develop Investment Policy Statement (IPS)

Working with you, we prepare a written investment policy statement (IPS). The IPS provides direction for the overall investment portfolio and identifies the following constraints:

  • Expected return goals
  • Risk tolerance (volatility of returns)
  • Investment time horizon
  • Spending/cash-flow requirements
  • Investment manager evaluation criteria
Asset Allocation Design

Your Sequoia advisor works with our Investment Committee to develop a custom-tailored allocation strategy. There are many different categories of assets that may comprise any one asset allocation plan. Although new ones may be added at any time, some of the asset classes Sequoia uses include:

  • Large and Small Cap domestic growth equities
  • Large and Small Cap domestic value equities
  • International equities
  • Emerging market equities
  • Alternative or non-market correlated assets
  • Short-term, intermediate and long-term bonds
  • International, high-yield, or opportunistic bonds
  • CDs, Money Market, or other cash equivalent holdings
Implementation

After the appropriate risk level and asset allocation strategy have been defined, your Sequoia advisor will recommend the appropriate implementation strategy. This may include the use of individual equities and bonds, mutual funds, exchange-traded funds, and cash equivalents.

Monitor

We manage your portfolio as an ongoing process, formally rebalancing it periodically throughout the year as market conditions dictate. Continuous analysis enables our Investment Committee to review asset classes and funds regarding performance or management inconsistencies so that changes can be made where necessary. We also meet periodically with you to provide detailed performance reviews, so you remain informed about your portfolio’s investment performance and in control of your options.

Asset Management FAQs

Will Sequoia work with just a portion of my investment portfolio?
Yes, Sequoia is comfortable working with all or a portion of your assets. However, we feel we do our best work when given the opportunity to manage the entire portfolio.

How does Sequoia determine what securities to purchase?
Sequoia obtains research from a number of sources, including CS First Boston, Ibbotson, Morningstar and other databases. Using that information, we develop a focused list of securities and build a specific portfolio based on your needs.

Are asset management accounts managed in-house or does Sequoia use outside managers?
Sequoia acts as your independent investment consultant and is responsible for designing an appropriate strategy for you. Once an agreed upon plan is in place, Sequoia recommends outside (non-Sequoia) investment managers to implement the desired asset allocation strategy.

Why does Sequoia purchase mutual funds instead of just equities (stocks)?
Although the general perception is to buy individual stocks, most investors may not get enough diversity in their portfolios by purchasing individual equity positions alone. Sequoia also believes that by utilizing a thorough due diligence process, clients are better served by implementing the most appropriate investment vehicle for your personal situation – whether it be mutual funds, ETFs, CDs, individual equities and bonds, or money market securities.

What is the minimum amount Sequoia will invest?
Our approach brings the most value to the client when total investible assets are at least $100,000.

What management fee does Sequoia charge?
We offer a sliding fee scale based on total assets under management that starts at 1.5% annually.

We are ready to help you be the architect of your own future. Contact Kevin Tichnell directly at 330.255.4341.

*Sequoia Financial Advisors, LLC does not provide tax or legal advice. These professionals should be consulted separately before implementing changes to your tax or legal matters.