Aurora has developed what we call our Informed Investing or I2 Strategy.
Our I2 Strategy is centered on three hallmarks:
1. An initial, comprehensive assessment of each client’s present and future financial needs to include an analysis of the client’s risk profile.
For this purpose, we use a structured quantitative analysis and a qualitative conversational assessment.
We have found, over time, that ensuring a common understanding between advisor and client on the issue of risk serves to reduce the possibility that clients will be shocked by the inevitable market and portfolio fluctuations that will occur, and to improve client confidence in the investment process.
We also conduct periodic strategy sessions with clients that are designed to integrate the investment portfolio into broader, long-term financial planning.
2. An emphasis on dialogue and communication, particularly our ongoing education effort to inform clients about markets and the global economy.
This effort includes regular web conferences or email blasts to review economic data or that feature market and sector updates from financial commentators, seminars on special investment topics, blog posts on current hot-button issues, and thought pieces on longer term investment and economic trends.
Aurora helps clients be better informed and more comfortable in the investment choices that are being made on their behalf. An increasingly more complex investment environment requires expert assistance to navigate, but it also calls out for ensuring that clients do not lose touch with the evolving financial marketplace, since being uninformed will increase apprehension and result in a loss of sovereignty in personal financial matters.
Not only do we share our economic and market view, but we also comment on how the changes in economic conditions impact our decisions to alter investment mixes. These decisions, and the related rationale, are regularly communicated to clients so that they understand the changes in their portfolios.
3. Construction of portfolios that reflect sound financial analysis and a solid understanding of a client’s individual financial needs and risk profile.
We manage client portfolios to risk metrics that are specific to each client and constantly review portfolio performance to ensure that a client’s investment mix meets the planned risk-reward profile and the target performance parameters.