• Investment Selection Process

    The process of investment selection is complex. It takes years of training and thousands of hours of experience in asset class research to be able to identify investments that are suitable for our model portfolios.

Investing in Your Future

As a part of an ongoing process to help you achieve your financial goals, our independent, in-house analysis team screens up to 14,000 investments a year. We choose investments with an over-arching purpose: to engineer portfolios designed to protect your hard-earned money against risk of loss, and to capture growth potential.

How do we do this? Before selecting any individual investment, we:

Our investment committee conducts face-to-face interviews with over 200 portfolio managers, specialists and representatives each year. If, for any reason, an investment doesn’t meet or surpass our stringent quality standards—those investments will never be a part of a Hanson McClain portfolio.

If an investment survives our qualitative evaluation, we then quantitatively test it against numerous criteria using over 40 different metrics, including time horizon, risk, potential return, history, originating company and cost. This is done to make absolutely certain it meets or exceeds the investment standards we set for our diversified portfolios.

Portfolio Construction

Once an investment has passed our rigorous analysis, it is modeled within the portfolio, over a variety of time frames and economic environments, to evaluate the value added by the potential position. Once selected, each investment plays a special role within that portfolio to create diversification, help reduce risk of loss, and provide market growth opportunity.

We understand that low-cost investments are an important consideration, which is why you’ll see many low-cost ETFs and mutual fund investments as the foundation of your portfolio.

After an investment portfolio is constructed, its oversight doesn’t end there. Each investment is continually monitored to make certain that it’s doing precisely what it’s supposed to do and providing value to the overall portfolio. If, at any time, an investment is not performing as expected, it will be replaced with a new investment.

How Are Your Investments Chosen?

How do we select a portfolio that’s right for you?

  • First, we listen to you to help us better understand your unique goals, dreams, risk tolerances and financial timelines.
  • Next, we complete a personalized risk analysis using software to assess your individual comfort level with investment fluctuations as markets move up and down.
  • Finally, we’ll select an investment strategy and portfolio that aligns with your risk comfort level and potential growth expectations.

As your life evolves and your circumstances change, your investment strategy and portfolio must change, as well. Our partnership with you is ongoing and we’re continuously listening to understand changes in your life so we can adjust your investments appropriately.