Investment Management

Active Asset Management

Investment Management2019-06-05T20:33:47+00:00

Our Philosophy

Investment diversification is often the only risk management approach used by investors and other financial professionals. Unfortunately, a portfolio built upon a single risk management approach can result in unintended consequences. To help avoid this risk, Tempus Advisory Group seeks a layered approach to asset management:

LAYER ONE

Diversification based on your unique risk tolerance and timeframe

LAYER TWO

Implementing an ecosystem of quantitative stratgies to create a customized portfolio

LAYER THREE

Algorithms designed to approach risk in various ways

Our focus is on maximizing the compounding annual growth rate of a portfolio by utilizing a combination of downside risk mitigation and an emphasis on high-quality, low-cost holdings. A portfolio should be actively managed with full transparency; where all costs and potential risks are disclosed and expectations are clearly defined. Ideally, a portfolio should be aligned to a measurable financial goal and continually monitored.

Our Process

We begin by assessing risk and identifying your goals. We discuss and review our quantitative strategies, then design a customized ecosystem. We will implement and provide ongoing due diligence to ensure your ecosystem remains suitable or adjust as needed.

The assertion that one’s ability and willingness to take risk is one and the same, is dangerously wrong! Even the best investment ideas and strategies are headed for failure if these risks are not adequately determined and properly aligned. Step 1 begins with establishing your financial baseline by gathering all data relevant to your net worth and cash flow. When we are confident that your financial baseline accurately represents your current situation, we can move on.
At this stage, we have the information necessary to determine your willingness to take risk and do so through a process called stress testing. Stress testing, simply explained, is as a series of “what-if” scenarios. Our cutting-edge technology takes large amounts of data through a series of complex computations and transforms it into an easy to understand risk versus reward comparison. Our technology provides you the opportunity to visualize how inflation, interest rate hikes, or even major market corrections might impact various investment strategies and portfolio allocations.

After determining risk, we can establish your optimal asset allocation, which may incorporate advanced strategies, such as options trading, if suitable, or income distribution, when applicable. We continue to utilize stress testing to ensure your willingness and ability to take risk remain aligned to the strategies under consideration.

Your customized ecosystem is designed utilizing a combination of strategies that incorporate several approaches including:  tactical (holdings-based algorithms), strategic (economy-based algorithms) and hybrid (strategic and tactical, market-based algorithms).

The ecosystem holdings selection process begins with Helios Quantitative, our partner and independent third-party research firm.  We take the data Helios provides and perform an additional layer of due diligence to ensure the holdings are low in cost and high in quality.  This two-party due diligence process yields the Tempus recommended portfolio holdings list, which consists of exchange traded funds and low-cost mutual funds.

We will open and fund a discretionary, discount-eligible fee-based account, then purchase the recommended holdings on your behalf: the final step in the initial process.

Our commitment to provide ongoing evaluation through a multifaceted approach:

  • Semi-annual review to ensure your ecosystem remains aligned to your goals
  • Monthly review to ensure your holdings are performing within appropriate and expected ranges
  • Monthly data calculations to ensure your strategies are aligned to economic expectations
  • Weekly and monthly data calculations to ensure your strategies are aligned to market volatility expectations

Are you getting the Tempus Treatment?

  • Do you know your personal and portfolio risk scores?
  • Do you know your portfolio’s total cost (internal and external fees)?
  • Are your investments aligned to a goal or goals?
  • Are you reviewing your investments at least semi-annually?
  • Does your investment advisor or manager commit to as least monthly due
    diligence of the holdings he/she recommends?
  • Do you know the difference between an investment advisor and a broker? Which are you working with?
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