Development of the Investment Process
Investment Plan
At Longer Financial, we view our job as one of managing the investment process, rather than one of selecting individual securities. In managing that process, we take the following steps:
- We perform a comprehensive review of your financial circumstances.
- We identify your financial and investment goals.
- Together, we explore any special concerns you may have, such as risk tolerance, tax considerations, and liquidity needs.
- We construct and implement an investment plan tailored to your needs.
- We provide accurate accounting and administrative records.
- We design our reporting and communication procedures to meet your specific requirements.
Regardless of your ultimate financial goals, a clear-cut investment plan is an essential first step. Because every client has distinct investment objectives, we customize the portfolios, based on the answers to these questions:
- How much return on investment are you seeking?
- How much risk are you willing to assume?
- Within what time period do you hope to reach your goals?
- If your objective is to maximize your income, how much income do you need from your investment portfolio?
- Do you have liquidity requirements in your future that should be incorporated into the plan?
- What special tax issues should we consider?
After we explore these questions together, we are able to make the following recommendations:
- We propose the investments that are suitable for you, based on your financial objectives, net worth, and general circumstances.
- We identify the most productive and prudent way to allocate your funds among various asset classes.
- We arrange the optimal administrative setup for your account.
- We select the system of communication and feedback that is most appropriate for monitoring and reviewing your investments.
The Investment Policy
After the plan is adopted, but before trading begins, we provide a detailed policy statement that outlines the parameters for your individual portfolio. We strive to construct a portfolio that will accomplish the stated objectives at a risk level that is comfortable for you.
Statement of Investor Rights
The Statement of Investor Rights was developed on March 18, 2013, by the CFA Institute* to advise investors of conduct they are entitled to expect from financial service providers. These standards help ensure all investment professionals place client interests first. By helping investors identify asset managers committed to high standards of professional conduct, the CFA Institute is seeking to enhance the integrity of the investment industry.
When engaging the services of financial professionals and organizations, an investor has the right to the following standards:
- Honest, competent, and ethical conduct that complies with applicable law
- Independent and objective advice and assistance based on informed analysis, prudent judgment, and diligent effort
- Investor’s financial interests taking precedence over those of the professional and the organization
- Fair treatment with respect to other clients
- Disclosure of any existing or potential conflicts of interest in providing products or services to the investor
- Understanding of the investor’s circumstances, so that any advice provided is suitable and based on individual financial objectives and constraints
- Clear, accurate, complete, and timely communications that use plain language presented in a format that conveys the information effectively
- An explanation of all fees and costs charged to the investor, and information showing these expenses to be fair and reasonable
- Confidentially of all information
- Appropriate and complete records to support the work completed on behalf of the investor.
Throughout its corporate history, beginning in 1985, Longer Financial has embraced the ideals identified in the Statement of Investor Rights and remains committed to these fundamental, ethical principles.
*The CFA Institute is the largest association of investment professionals in the world. Its mission is to lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society.