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Quarter in Review: Staying Ahead of the Game with Strategic Client Initiatives

Updated: Apr 23, 2023

As disciplined investors, we have a keen eye on what’s happening and are on the lookout for opportunities to give our clients an edge. That's why we want to keep you all in the loop on the current market environment and our strategic client initiatives.

Together, let's stay ahead of the game.

Quarter in review.

The first quarter of 2023 saw continued market volatility with some asset classes that had performed poorly in 2022 experiencing a turnaround. We see this as an indication that investors are willing to focus on long-term prospects and predict a shift in monetary policy towards more accommodative measures. International developed market equities performed well due to their relative valuations and strong earnings. Emerging market equities also rose, due to China's reopening and consumers tapping into savings accumulated during lockdown.

In the US, large caps outperformed small caps, which was attributed to the higher weight of financials and lower weight of technology in the small cap portfolio. Yields declined in response to the prospect of a dovish shift in monetary policy, with US fixed income and global high yield performing well. REITs were supported by slight improvements in mortgage rates and home prices, while commodities declined primarily due to lower energy prices.

Bottom line.

During the downturn of 2022, clients who were consistently dollar-cost-averaging (DCA) into their strategic asset allocations were able to take advantage of lower prices and buy more shares, which positioned them well to benefit from positive performance in 1Q23. By continuing to invest through a downturn, clients can accumulate more shares at lower prices, which increases exposure to a market recovery.

Illustration 1.

The above chart shows the effect on total accumulated shares of lump sum investing vs. DCA in 2022. In the lump sum scenario, $20,000 is invested in the IIM Aggressive Portfolio on January 1st purchasing 805 shares. In the DCA scenario $1,667 is invested on the first of each month for 12 months resulting in total accumulated shares of 920 shares. The same $20,000 purchased 120 more shares. It is important to note that this trend will reverse in a market recovery - the same dollar will buy less shares as the market increases. In anticipation of a recovery, we are encouraging clients to continue with their DCA strategy and/or make additional lump sum contributions.

Our approach.

As a tech-enabled investment firm, we believe in leveraging the benefits of technology, while still retaining the personal touch of human interaction. Our holistic approach combines the efficiency and analytical power of technology with the empathy and expertise of human advisors - technology is leveraged to enhance our clients' experience, not replace it.

When it comes to investing, we are risk-based managers of capital - we don’t time the market - we design well-diversified strategic asset allocations that increase the likelihood of clients living the life they want to live. Our portfolio construction seeks to minimize risk, maximize returns, reduce emotional decision making, and align with goals.

We stay well-informed of the latest financial and economic developments to pinpoint enduring trends and strategically position our firm to take advantage of them for the benefit of our clients.

Here is what we are focused on for 2023:

Innovation in WealthTech

  • What we see: technology innovation will increase access to financial services, lower costs, create greater efficiency, improve transparency, enhance personalization, and enable better risk management, all of which can lead to improved financial outcomes for clients.

  • What we are doing: through both proprietary processes and leading-edge partnerships, we seek to provide an exceptional experience that’s tailored to client needs, from completely digital account opening to a highly personalized financial planning, portfolio management, and uncomplicated reporting.

Democratizing Institutional Alternatives

  • What we see: across asset classes, diversification has been challenging, with positive stock/bond correlations through 2022. While falling inflation should reverse this trend, adding alternatives to a traditional investment portfolio, where appropriate, can create additional diversification benefits and enhanced income and return potential. See Illustration 2.

  • What we are doing: the IIM Alternatives Platform offers qualified clients an unparalleled opportunity for access to marquee funds in which some of the highest caliber institutional investors, such as the Ivy League endowments, participate.

Prudent exposure to Digital Assets

  • What we see: the emerging crypto economy is known for high volatility, with prices that can fluctuate rapidly and dramatically over short periods of time. However, we see large potential upside in their ability to disrupt traditional financial systems, enable faster and cheaper transactions, and provide access to financial services for people who may not have had it before.

  • What we are doing: the IIM Diversified Crypto strategy seeks asymmetric returns by strategically investing in a basket of the largest, most marketable crypto currencies, as well as the emerging economy that supports the industry. In general, we recommend a < 3% allocation to this emerging asset class.

Increased focus on Environmental, Social, and Governance (ESG) issues

  • What we see: investors will continue to prioritize environmental and social responsibility in their investment decisions, and companies will increasingly recognize the business opportunities that come with sustainability.

  • What we are doing: this quarter we rolled out the IIM ESG Risk-Based Portfolios. These five funds are allocated from conservative to aggressive and prioritize ESG factors into the investment process.

Illustration 2.

The inclusion of private equity has the ability to enhance portfolio returns and reduce risk.

Please let us know if you would like to schedule a meeting to check-in on your investments and goals, by replying to this email.

Best regards –





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