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The IMA Investment Process

IMA uses an investment approach that is founded in modern portfolio theory. The approach, similar to that utilized by large institutional investors and very wealthy families, relies on asset allocation as the main determinant of portfolio performance. 

Working With the Client

The first step in the IMA investment process is working with a client to determine the client's characteristics and investment needs. Factors which are key to this process are, among other things, the client's objectives, income requirements, risk tolerance, and time horizon. This information is used to develop an investment profile specific to that client which will be used to carry out their personalized investment strategy.

Asset Allocation

The next step in the process is to take the client's personalized profile and create an asset allocation for their new investment portfolio. Asset allocation refers to the dividing of assets into separate investment categories such as large-cap U.S. stocks, international stocks, short-term fixed income, real estate, etc. This allows us to give our clients exposure to many different investment markets throughout the world while diversifying away the risk of being in just one of those markets at any given time. It has been shown that asset allocation is the single most important factor in determining portfolio performance rather than security selection or trying to time the market. (See the pie chart below)


IMA further minimizes portfolio risk by investing in asset classes that react differently under similar market situations. The end result of the asset allocation process is a well balanced portfolio specifically targeted to the client's personal investment needs. Click here to continue.

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