Investment Management

Research Driven Investment
Strategies

Portfolio Goals

We construct investment portfolios using the following criteria:

  • Meeting the Client's Long-Term Financial Goals

  • Control Costs

  • Control Risk

  • Manage for Taxes

  • Achieve Highest Return Per Unit of Risk

  • Transparency

  • Clear Methodology and Open Communication

Investment Choices

Institutional Funds

Index Funds

Mutual Funds

Exchange Traded Funds

Individual Stocks

Bonds

Asset Allocation

Asset allocation explains more than 90% of the volatility (or variance) of returns of an overall portfolio. Depending on your individual goals, risk tolerance and other factors, your portfolio may consist of equities, bonds, cash, and alternative asset classes.

Investment Selection

Our portfolios are designed for long term investors. While we do not believe that anyone can consistently outsmart the market, this does not imply that your portfolio will remain static. Economic conditions and other special circumstances may warrant a modification of your portfolio and more nimble approaches to your asset allocation. We endorse a “buy and monitor” approach. In these events your Advisor will contact you to discuss a new strategy or investment.

We endorse a global, strategic asset allocation plan and balance the structure according to your risk profile and objectives. We re-balance portfolios according to predetermined targets.

For an investment to be considered in a client's portfolio it must meet certain criteria.  Our review process includes but is not limited to:


Mutual Funds / Exchange Traded Funds

Expense ratio, front and deferred 12b-1 fees

Sharpe Ratio

Liquidity

Investment Transparency

Turnover ratio within taxable accounts

Asset class exposure

Current and expected valuation

Bonds

Issuing Agency /Company

Credit Rating

Term (Short / Intermediate/ Long)

Coupon Rate

Yield to Maturity

Yield to Worst

Individual Stocks

Valuation

Sector

Opportunity Buys

Custody of Client Assets

Our client assets are held at Charles Schwab & Co., Inc. who serves as the primary custodian but we also help manage the assets of clients who have 401(k) or 403(b) accounts at other custodians. We never assume a full power of attorney over our client’s accounts, instead we have a limited power of attorney to trade and make client approved changes and requests. We serve as a fiduciary advisor on every client account, meaning we will always do what is in the best interest of the client.

Using Charles Schwab & Co., Inc as primary custodian, Cathy Pareto and Associates has access to a wide range of products and support to help investors reach their financial goals, including:

  • Full range of investment strategies and trading services
  • Wealth management services
  • Technology and service support
  • Safeguards designed to protect assets
  • Strict ethical business practices

We do not sell products, nor do we receive any type of compensation from any firm, including Charles Schwab & Co., Inc. This relationship simply allows us to track your investment accounts on a daily basis and provides you with increased privacy and security.

Our primary goal as your investment advisor is to provide objective investment advice and select investments that will maximize your expected return with a measured amount of risk. In making the investment selections in your portfolio we take into consideration your risk tolerance, tax sensitivity, investment horizon, investment costs, cash withdrawals from your portfolio, and other individual factors.

We strive to achieve principal preservation, capital enhancement and inflation protection for our client portfolios.

Fees

After our financial planning clients receive their in depth financial plan, most choose Cathy Pareto and Associates to manage their assets. Our investment management fee includes the updating of your financial plan and ongoing in depth advice as needed. The scope of work and fee for an Advisory Service Agreement is provided to the client in writing prior to the start of the relationship.

The annual investment management fee is based on a percentage of the investable assets according to the following schedule:

Portfolio Size

First $1,000,000

Next $1,000,000

Next $3,000,000

Balance Over $5,000,000

Quarterly Fee

0.25%

0.1875%

0.125%

0.1%

Annual Equivalent

1.00%

0.75%

0.50%

0.40%

Account Size Minimum

Cathy Pareto and Associates generally requires a minimum of $500,000 to open and maintain an individually managed account. This account minimum may be waived at the discretion of the Firm. Where the Firm waives this account minimum, the annual fee will be set at 1.50% subject to a $5,000 minimum annual fee.

Cathy Pareto and Associates allows the accounts for members of the same household to be combined for fee paying purposes. We combine the account valuations to assist you in meeting fee breakpoints and therefore lowering the overall fee level. The firm extends this option to all accounts residing in the same household.


Contact Us

Thank you!
Oops!