Design Portfolio. Execute. Monitor.
Investment Management Services
Our Investment Management Services (or Assets Under Management) can help you with the “Execute and Monitor” stage of your financial plan. Once your initial financial plan is created, you are ready for implementation. Of course, you may perform the implementation of your plan as a “do-it-yourselfer.” Before you embark on that journey, please read about Doing Investment Management Yourself.
You may want to consider our Investment Management Services if any of these conditions apply:
- Are not comfortable with an investment account set-up, selling, buying and rebalancing a portfolio
- Don’t know how to effectively manage a withdraw strategy across a portfolio consisting of taxable, tax-deferred, and tax-free accounts
- Are approaching diminishing capacity, where it just isn’t feasible
- Don’t understand or are unhappy with your current Investment Management fee structure
- Want more meaningful quarterly reports providing insights on how you are doing with your Plan goals and objectives
If any of these apply to you, we are glad to assist with our Investment Management Services. Coupled with our On-Going Financial Planning service, we believe that you will experience a greater chance of success in reaching your Plan goals. We will provide you with very low and transparent fee schedules, meaningful quarterly reporting, and rebalancing based on your personal risk tolerance.
We build portfolios for long-term investors. All our portfolios have a few things in common:
- Fiduciary Model
- No commissionable products
- Low cost funds with long track records
- Periodic rebalancing
- Low management fees: Fee Schedule
- Professionally managed
- Multiple Outside Managers
- One Custodian: TD Ameritrade
Investment Management Philosophies
There Must be a Plan
We do not perform Investment Management Services without a written Plan provided through our financial planning process. We believe investing is a well-defined strategy to meet specific long-term goals. An initial Plan and On-Going Financial Planning services are a therefore required and vital part of the Investment Management Services.
Generally, our investment management services are based on a globally diversified strategy involving a long-term, disciplined approach that manages risk through appropriate asset allocation. We recognize that each client’s needs and goals are different. Subsequently, portfolio strategies and underlying investment vehicles may vary. The following are common strategies we employ in client portfolios:
- Active Asset Management (Ex: mutual funds)
- Passive Investing (Ex: Exchange Traded Funds or ETFs)
- Hybrid – Passive Core plus Active Satellite
- 7Twelve ®
See our article on Portfolio Design Active vs Passive
Modern Portfolio Theory (MPT)
MPT is an award-winning theory developed by Harry Markowitz in 1952. According to Investopedia, MPT is “A concept from finance that describes ways of diversifying and allocating assets in a financial portfolio in order to maximize the portfolio’s expected return given the owner’s risk tolerance.”
We subscribe to more of a MPT philosophy and not market timing or day-trading of individual equity selections, sectors, or geographies.
Three Key Portfolio Designs
1. Simple, Passive, and Strategic Portfolios
Simplicity is the ultimate sophistication
– Leonardo Da Vinci
Several simple, passive, and low-cost global ETFs are available that track U.S. and international stock and bond markets, providing broad diversification. The portfolios are managed to a fixed asset allocation target and are rebalanced annually. Five risk levels ranging from 20% equity to 100% equity are available to match your risk tolerance, goals, and objectives. Tax-sensitive versions of all the global ETF portfolios are also available.
Actively managed satellite investments are also available and may be added to the core passive investments.
View/Download First Ascent Brochure
2. Complex (Multi-Asset), Passive, and Strategic Portfolios
Complexity in a Simplified Package
– Yours Truly
Just because a multi-asset portfolio is complex, we can provide it in a simple package for easier implementation and management. For this portfolio design, we use the 7Twelve® portfolio strategy developed and owned by Dr. Craig Israelsen. It is based on the design philosophy of ultra diversification with low correlation among the 7 asset classes and 12 funds.
The key premise of a multi-asset portfolio is that no single asset class is dominant year after year so 7Twelve® portfolios help balance out year to year performance while lowering overall risk.
3. The “Hybrid” Portfolio Design
Passive Core / Active Satellites
A passive yet strong Core consisting of low-cost globally diversified ETFs may consist of either the funds available through First Ascent or a 7Twelve® personalized portfolio, depending on your risk tolerance, investing goals, and other specific requirements.
Decades of research has identified certain “factors” or attributes of stocks that may produce a larger return over a period of time. These factors can then be rotated on a monthly basis to take advantage of market dynamics. The factor portfolio and rotation is designed within an ETF to maintain tax efficiency.
The unique factor rotation methodology used is based on “rules-based” metrics for up to 8 different factors within an index.
Example Core / Satellite
Segregating Planning from Investing
One of our basic principles is being unbiased and independent thinkers for our clients. For this reason, we have chosen to utilize outside investment management firms.
By segregating our Planning process from Investment Management, we maintain the integrity of both worlds.
Outside Investment Managers
We have chosen to use outside managers to perform the buying, selling, and rebalancing of the assets. These outside managers have significant experience, long track records, and are very well known within the industry. They provide economies of scale that a small consulting firm such as ourselves, simply cannot provide. The result is better service for our clients AT A LOWER COST!
We pick and choose these money managers based on available portfolios to match your risk tolerance, investing objectives, and to personalize an investment strategy that is best for you.
First Ascent Asset Management, LLC
Asset management services provided by First Ascent Asset Management, LLC (FAAM). Neither Kastler Financial Planning nor FAAM takes possession of client funds or securities. Funds are held at custodian, TD Ameritrade. Trades are made on a discretionary basis.
Who is First Ascent Asset Management, LLC?
CEO Scott MacKillop started his career in financial services in 1975 working as an intern at the Securities and Exchange Commission while attending law school. He practiced law in Washington, DC for a little over 15 years, specializing in securities law, ERISA and venture capital transactions. After holding a number of executive positions, he founded First Ascent Asset Management, LLC and has written over 90 articles and papers on investment-related topics and has spoken at over 100 financial services conferences.
Patrick Krulik is the Chief Investment Officer (CIO) at First Ascent. He has worked in the financial services industry since 2005, beginning at Mt. Yale, where he served as an investment analyst. After holding a number of analytical positions, he now serves as CFA at First Ascent working closely with financial advisors to help them meet their clients’ objectives and goals.
By choice, First Ascent Asset Management, LLC only works with advisors, not directly with clients.
Lunt Capital Management, Inc.
Asset management services provided by Lunt Capital Management, Inc. Neither Kastler Financial Planning nor Lunt Capital Management takes possession of client funds or securities. Funds are held at custodian, TD Ameritrade. Trades are made on a discretionary basis.
Who is Lunt Capital Management, Inc.?
John Lunt is the President of Lunt Capital Management, Inc. John has created a variety of diversified, tactical investment strategies used by financial advisors around the country. John and Ryan Hessenthaler co-created the methodology for eight index strategies calculated by S&P Dow Jones Indices. He has been a featured speaker at investment conferences around the country, and has written extensively about financial markets. John is a charter member of the ETF Strategists Roundtable for key influencers associated with ETF management. From 2001 to 2014, he served on the board of Utah Retirement Systems (URS), a $20 billion pension fund. From 2004 to 2007, he was elected by his peers as board president. John is currently a member of the investment committee for the $8 billion Utah Educational Savings Plan (UESP). John completed the Program for Advanced Trustee Studies at Harvard Law School and finished a number of courses at the New York Institute of Finance on trading and portfolio management. He formerly worked on the Washington, D.C. staff of U.S. Senator Robert Bennett. John graduated Magna Cum Laude with University Honors from Brigham Young University with a degree in Economics, and he later received an MBA in Finance and International Business from New York University.
We do not take possession of client funds or securities. We also do not make trades without your written permission, except for rebalancing.
Neither Kastler Financial Planning nor the 3rd party outside managers holds your assets. All investable assets are held at TD Ameritrade, one of the largest custodians in the industry.
Past performance is not indicative of future performance. Investing involves substantial risk and has the potential for partial or complete loss of funds invested. Investments mentioned may not be suitable for all investors. Before investing in any investment product, potential investors should consult their financial or tax advisor, accountant, or attorney with regard to their specific situation.