Investment Management Services
KFG clients have the ability to access a wide range of investment opportunities in order to gain exposure to various asset classes. Domestic and international equities and fixed income, alternative investments, real estate and other areas of focus are all accessible through KFG.
Before any meaningful discussion of investing and asset class selection can be engaged in, it’s very important to assess each client’s tolerance for risk, and their understanding of the relationships between risk and potential reward. While a dynamic measurement, this initial assessment represents a beginning point for assisting in judging the appropriateness and applicability of the various asset classes available to consider in looking to meet a client’s investment objectives.
Separately Managed Accounts
Especially with a client’s non qualified assets, the concept of separately managed accounts rises above the far more commonly encountered approach of paying to be involved in retail mutual funds; of buying into a commonly owned pool of a mostly unknown makeup with an existing, inherited tax basis. Instead, separately managed accounts are set up for you with your investment dollars at the time you establish your investment. Your assets, your tax basis, your ability to customize. All with these monies being managed by some of the preeminent money managers in the world.
Going far beyond the 1950’s concept of “Modern Portfolio Theory (MPT)”, KFG makes use of managers who diversify not merely between stocks, bonds and other alternatives, but across the very approach taken in employing these funds. Obviously not all market environments lend themselves to a “buy-and-hold” approach; a key tenant of MPT. Other approaches are necessary to help smooth out the equity curve of clients that utilize more intelligent, defensive and wider ranging diversification styles in an effort to perform better in more difficult market periods.
Clients of KFG have at their disposal access to well known Managed Futures, REITs, Oil & Gas and Equipment Leasing partnership investments. These typically require working closely with a client’s CPA to ensure the tax ramifications of each work well with the client’s tax situation, as well as requiring that clients meet certain minimum net worth levels, and sometimes certain levels of past investment experience.