Investment Management

Don’t dabble in diversification. Master it.

We provide customized portfolio design to address liquidity needs, manage distribution requirements, and monitor allocation and rebalancing. We provide each client detailed analysis and comprehensive performance reporting using Your Portfolio.

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Why do we focus on diversification?

Most mutual fund managers focus on what securities to buy and when to buy them. But research shows that how you diversify your investments is by far the biggest driver of portfolio success. In a landmark study (Brinson, Hood, Beebower Study, 1986, Financial Analyst Journal 42(4)), researchers investigated the potential drivers of portfolio performance. So what did they find was most important? It wasn’t market timing or individual security selection, but rather asset allocation. Asset allocation drives 94% of portfolio performance. So it’s not what or when you buy or sell, but how to choose to diversify across asset classes that has the biggest effect on your long-term performance.

Therefore, we focus most of our time on you, your risk profile, your required rate of return, and selecting the proper asset allocation for you. Then we work on portfolio construction using all the investment vehicles that make sense for you.

Everyone talks about the benefits of diversification. But at Echo Wealth Management, we take the practice of diversification to a more sophisticated level. Depending on each investor’s objective, we offer various portfolios that consist more than 15 asset classes, and nearly 5,000 securities from approximately 50 countries worldwide through ETFs offered by Vanguard, iShares, WisdomTree and SPDRs. The broad diversification takes the emotion out of trying to be in the right place at the right time - because you have the opportunity to capture the gains in more segments through more securities, whenever they occur.

In addition to the ETFs using traditional indexing, we also include some smart beta strategy ETFs or institutional class mutual funds in the portfolios. Smart beta is a term for rules-based investment strategies that do not use conventional market-cap weightings. For example, Fundamental Weighting is an index construction methodology that uses indicators of company size (such as sales, cash flow, dividends, and book value) to select index holdings and set their weights. They are intended to give investors access to sources of potential additional return in their low-cost passive portfolios.

We are rigorous, but not rigid in selecting investments. We couple the active management of managers with a passive low-cost indexing approach. For certain areas such as alternatives, we use active managers. In fact, this approach creates a more durable, dynamic and opportunistic portfolio.

Furthermore, our investment approach is not tied to any “proprietary” investment in which we have an ownership stake. Rather, we choose managers for each specialty area of the market. This provides an opportunity for true experts in each respective area.

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Discovery Call

We offer a complimentary "Get Acquainted" call to learn more about your financial planning needs and share information on our firm to see if our services are right for you.

Does your portfolio have too much risk? Or not enough?

Discovering your risk tolerance doesn't have to be a trial and error process.

Investment Management Fees

The annual fee for investment management services will be charged as a percentage of assets under management, according to the schedule below:

Total Assets under Management Annual Fee

$0 - $1,000,000 ....................................... 1.00%

Next $2,000,000 ...................................... 0.80%

Next $7,000,000 ...................................... 0.60%

Next $5,000,000 ...................................... 0.40%

$15,000,001 plus ..................................... 0.25%

We charge only against those assets we consider to be managed.

For retirees, EWM typically requires a minimum account size or client relationship of $1,000,000 for investment management services. Client household where the total balance of all accounts is less than $1,000,000 will be accepted only on a case by case basis based on certain criteria (for example, future earning capacity, anticipated future additional assets, related accounts, family relationships and pro bono work).

EWM may waive or reduce advisory fees and/or minimums for certain clients, such as charitable organizations or employees and members of their families. The client’s Investment Management Agreement will outline the agreed upon fee.

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Let's Start a Dialogue

Managing your wealth is a very personal subject,
one we should discuss in a more personal setting.
Your time is valuable.

Before you visit our office in Plymouth, please schedule this complimentary 30 minutes Discovery Call (Zoom Video) with a member of our team to share your financial planning needs. Our team member will let you know if you should schedule a 60 Minute FIT Meeting with Echo.