Asset Management

Helping to preserve and create wealth through customized, tax-efficient management.

Successful wealth management is a process, not an event. Securing one’s financial future, particularly in an uncertain economic environment, requires continuous oversight by an integrated team of financial professionals who are able to provide insightful advice and timely execution against an agreed-upon set of financial goals. Such oversight provides strategic perspectives on specific issues, including: What asset allocation is appropriate for your level of risk tolerance? Or, in which accounts should you own specific investments in order to maximize after-tax returns?

Lenox Advisors takes the time to listen to clients and understand how they accumulate their wealth: success in a self-built business, inherited money, a concentrated stock holding in a public company? Lenox then structures recommendations based on each client’s particular financial goals including their spending needs, multi-generational estate planning goals, and future philanthropic aspirations. We believe successful asset management should be part of overall estate, business and financial planning and should not be operated as a stand-alone silo. Thus, all analyses and recommendations are based upon Lenox Advisors’ understanding of each client’s objectives.

Asset Allocation

Lenox Advisors takes an institutional approach to individual investing, encouraging clients to approach their portfolio asset allocation similar to a college endowment or charitable foundation. All asset allocations start with the basic percentage allotments to cash, stocks and bonds in relation to a given time horizon. Diversification into traditional and non-traditional investments within each sector is then added to help increase the return expectation while also effectively helping to reduce the downside risk of the overall portfolio. Emphasizing asset classes and investment vehicles that have little or no correlation in a market cycle helps to increase success.*

Investment Vehicles

Lenox Advisors has no proprietary products, and utilizes an open architecture through consulting firms that assist in the initial and ongoing due diligence of money managers. Lenox implements portfolios through some of the best money managers and private firms available, as well as utilizing passive investments where appropriate.

Asset Ownership

Often overlooked, asset ownership is an important aspect of investment planning. For example, tax-inefficient investments can possibly be moved to tax-deferred accounts, and assets targeted for future philanthropy or future generations will have different allocations than those assets required for current spending or the current generation. These types of investment details could yield far more in returns than market timing or investment selection.

Manager Selection and Implementation

Lenox Advisors provides an independent, objective selection of investment managers to execute your asset allocation plan. Selection is based on the quality of the investment team, not the name of the firm. We utilize analytical tools such as Sharpe ratio and ‘up-and-down market capture’ ratios to compare managers within each asset class and style. We use well-regarded consulting firms to identify specialist money managers, visit these managers regularly, monitor their performance and evaluate personnel changes. We also go directly to top asset managers.

Lenox Advisors considers its managers as specialists in particular investment styles. The quality of the team, not name of the firm, is our overriding consideration. Below are a few of the firms with which we work. Click on their names to browse their Web sites:


-- Alliance Bernstein

-- Brinker Capital

-- Envestnet

-- Lee Munder Capital Group

-- Bank of New York Mellon

-- OppenheimerFunds

-- PIMCO


Performance and Portfolio Monitoring

Specific goals and monetary aspirations can change over time. Likewise, the cycles of the global markets and the structure of the world economy ebb and flow through the years. Lenox Advisors meets regularly with clients to constantly update the recommended asset allocation, rebalance the overall portfolio or replace the investment vehicle or manager. Any modification is made based on a clear understanding of each client’s current situation and future goals, and on up-to-date economic and investment vehicle analyses.

*Asset Allocation does not guarantee a profit or protect against loss in declining markets. There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio or that diversification among asset classes will reduce risk.

• Access to Separately Managed Accounts
• Municipal and Taxable Bond Portfolios
• Equities
• Alternative Investments
• Real Estate Investment Trusts
• Commodities-Based Funds
• Oil and Gas Partnerships
• Equipment Leasing Programs
• Mutual Funds
• Variable Annuities
  
  

“The one certain way to improve investment returns is to reduce expenses, and the greatest expense in most investment portfolios is taxes.  We believe wealth is amassed by focusing on after-tax returns, not pre-tax returns.”

Greg Olsen, CFP®, CLTC
Partner
Lenox Advisors