Portfolio Construction & Portfolio Management

Portfolio Management Services

Mersberger Financial Group's internal wealth management team and portfolio managers build and manage customized portfolios based on your goals and objectives through asset allocation and security selection.

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Portfolio Construction

Implementing the Investment Policy Statement

Once an Investment Policy Statement is established, the investment advisor then builds a tailor-made portfolio to address the organization’s unique risk and return objectives, as well as to address any liquidity needs and investment constraints outlined in the Investment Policy Statement.

The portfolio construction process consists of determining the appropriate asset mix of stocks, bonds, and alternatives, determining the securities to be used in each asset class, and continuously monitoring the portfolio to ensure it is meeting the expectations outlined in the Investment Policy Statement.

Portfolio Construction & Portfolio Management

What's Included
Asset Allocation

The asset allocation decision is determined by the investor’s risk tolerance, return objectives and portfolio liquidity needs, and time horizon. Investors with high liquidity needs and short time horizons will typically have more conservative portfolios allocated heavily to bonds and money market instruments to meet near-term cash flow needs, while portfolios with long- or perpetual-time horizons and low liquidity needs will be allocated more aggressively towards equities.

Security Selection

Securities are selected for each portfolio based on the investment philosophy, risk tolerances, and investment constraints of each investor. For fee-conscious investors, the firm will emphasize using low-cost, passively managed index funds and ETFs, while for investors with high-risk tolerances and a desire to attempt to outperform the market, the firm will implement active mutual funds and individual security selection to meet this objective. When selecting funds, the portfolio manager will take into account a range of risk and return statistics, the fund manager’s investment philosophy, process and strategy, and expenses.

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Portfolio Construction & Management

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