Change in Custody Rule for Assets

A No Action letter released by the SEC in February 2017 clarified its interpretation of the rule1 for asset custody. Quoting from a précis on the subject prepared by Fidelity Investments: The SEC has clarified that an adviser who has the power to disburse client funds to a third party under a standing letter of… Read more »

Observations on Risk Tolerance and Risk Capacity

The famous Temple of Apollo at Delphi—an important source of prophetic wisdom for the ancient Greeks—is well known for the two inscriptions on its portal: Know Thyself Nothing in Excess As several world capital markets continue to flirt with record high asset price levels, it is worth revisiting Delphic wisdom in order to prepare for… Read more »

Investment Publications: Patrick Collins et al.

A list of published articles on the topics of Asset Management, Trustee duties in portfolio design, monitoring and surveillance, Family Trust, Longevity Risk and Retirement Income Planning.   A Risk Primer for Investment Fiduciaries (with special attention to the management of endowment funds) – Patrick J. Collins, Ph.D., CLU, CFA, California Trusts and Estates Quarterly… Read more »

Cooking up a Diversified Portfolio

A diversified portfolio owns securities from various markets – the bond market, the real estate market, and the stock market. Additionally, a diversified portfolio benefits from geographic diversification. This means that it typically owns both U.S. and foreign securities. By contrast, a “focused” portfolio owns only a few securities – often within just one market…. Read more »

Portfolio Analytics

Portfolio Analytics provides technical information on the portfolio model used in your Investment Policy Statement [IPS]. The model employs historical returns, variances and asset class correlations for the period January 1973 through the end the previous year. The model focuses on the economic consequences of the strategic asset allocation decision. It does not take into… Read more »

Portfolio Management: Theory & Practice

Since our inception, the core mission of Schultz Collins has been to help investors make rational, informed and intelligent investment decisions. Prudent decision making, however, requires a basic understanding of capital markets and a familiarity with evolving research in the field of Financial Economics. In 2006, we published Portfolio Management: Theory and Practice to summarize… Read more »

Investment Themes: Fact or Fiction?

If you watch financial TV programs or read articles in the newspaper’s business section, you may notice an emphasis on “investment themes”. What investment themes will likely generate better portfolio returns? Will political themes outweigh economic themes? Will high corporate earnings boost investor sentiment; or, will high unemployment cast a dark shadow over investors? Investment… Read more »

What Investors and Trustees Should Know about Investment Advice

Is professional financial advice harmful? This article reviews and evaluates the current state of the U.S. Financial Advisory Profession. It cites findings from academic and governmental regulatory agency sources indicating that the profession is rife with conflicts of interest, abusive practices, and even outright fraud. This is not a matter of “a few bad apples;”… Read more »

References for Portfolio Management: Theory & Practice

Below is a by chapter listing for all the links in our Portfolio Management: Theory & Practice publication. Preface Note 09 – A Gentle Introduction to Investing Note 13 – Course Notes for USF Masters of Science in Financial Analysis Chapter One Note 09 – Well-Performing Portfolios and Well-Disguised Insolvency Note 13 – Diversification vs…. Read more »