Investment Advisory Service
At Pasqua, CPA we are dedicated to helping our clients optimize their net after-tax returns for any specified level of risk. To that end clients receive the Pasqua “team approach” utilizing the expertise of a CPA, a CFA charter holder, and a CFP professional to collaborate on, and be jointly responsible for the selection and continuous management of a client’s investable assets. We accomplish this through the use of our formalized 4-step process.
We develop a client’s customized Investment Policy Statement based on the strategies formulated in the Organize and Analyze stage of our process.
The Investment Policy Statement indicates what the initial allocation of a client’s assets will be, and indicates the type of investments included in the portfolio, quarterly rebalancing procedures, and allocation ranges for each asset class. It is our blueprint and the client’s agreement to the parameters under which their portfolio will be actively managed on an ongoing basis.
We believe quarterly rebalancing back to the allocation percentages prescribed in the client’s Investment Policy Statement is fundamental to maximizing returns over time as it effectively forces a portfolio to buy low and sell high. However, we always take into consideration any meaningful changes to economic conditions prior to the rebalancing of a portfolio to ascertain if the asset allocation itself needs to be adjusted within its prescribed allocation range.
We implement each client’s Investment Policy Statement by selecting the most appropriate investments which may include individual stocks or bonds, or for greater diversification ETFs (exchange traded funds) or mutual funds. For some clients we may also use investment derivatives if their particular strategies call for their use.
When selecting specific ETFs or mutual funds, we utilize a multi-screening process and state-of-the-art research software to perform peer-to-peer comparisons (comparing those ETFs/mutual funds in the same asset allocation category). This process allows us to discover the ETFs and mutual funds which represent the highest performers for the particular asset class within which they reside.
We monitor portfolios on a continuous basis, and may adjust asset allocations at any time, based on macroeconomic circumstances. This may include adapting to changing economic conditions, evolving life stages, changing tax laws, or other unforeseen events.
On a quarterly basis, we rebalance a client’s portfolio to within the range of the allocation percentages prescribed in the client’s Investment Policy Statement after taking into consideration any changes to economic conditions. We also run quarterly peer-to-peer diagnostic comparisons on each specific ETF or mutual fund investment to determine if each of those specific investments held by a client continues to outperform their asset allocation peer group, or if they should be replaced.
Our quarterly updated Performance, Asset Allocation and Individual Investment Monitoring Reports give clients an unobstructed view of their full investment picture in a meaningful and digestible manner.