1. AMJ Financial Client Relationship Roadmap:
STEP 1 ARTICULATE: We sit down with clients to help them decide what they want their future to be. If money were no object, what would you be doing? Where will you live in 10 years? What hobbies would you devote more time to? What causes are important to you? Would you travel more? If so, where?
STEP 2 ANALYZE: Once decided where you would like to be in the future, we analyze where you are currently and how we can help you be successful in reaching your life goals. What opportunities does your wealth bring? What are potential threats that may keep you from achieving your life goals?
STEP 3 ALLOCATE: Utilizing all of our resources, we create a personalized financial roadmap designed to overcome the threats, seize opportunities to pursue growth of your wealth, and to work toward achieving your life goals.
STEP 4 ACCESS: At AMJ we provide accountability and benchmarking to the plan to help ensure you stay on course to your ideal future. In other words, we monitor your implemented financial plan each step of the way. The financial world is full of changing dynamics so your plan needs to be flexible enough to thrive in changing market conditions.
STEP 5 RELATIONSHIP: The secret ingredient to reaching your financial goal is the relationship between you and your financial advisor! At AMJ we strive to create and maintain that relationship. This final and most critical part of our plan, and your success, is continued communication with AMJ Financial Wealth Management. We will continue to provide objective advice on ways to improve your plan’s performance as your ideal future comes more fully into view.
2. Investment Philosophy
AMJ Financial has a capital preservation model with a growth bias. We create a portfolio based on client goals and risk tolerance that is diversified following the principles of Modern Portfolio Theory. We have adopted the institutional model of core and satellite holdings. The equity core is invested in an All Cap Value Growth Blend Strategy. The portfolio is constructed of dividend-paying, growth-oriented stocks.
3. Tactical Asset Management
We use a Tactical Asset Allocation Strategy that allows us to move into equities as our process determines a better price-adjusted rate of return. As risk increases in the equity markets, we raise our cash positions and move into cash equivalents from equities. As risk in the markets (as measured by the price pressure momentum process) decreases, we deploy out of cash and into equity positions.
Weekly – all the positions are reviewed and put through the fundamental analysis. Any deletions or additions to the portfolio are executed.
Monthly – the rebalancing of positions is evaluated by sectors. Sector weightings are evaluated and relative performance is benchmarked.
Quarterly – we review the entire portfolio based on the whole investment process and clients are called to review performance and any incremental changes that we would like to see made to the portfolio.
Annually the client portfolio is benchmarked against the appropriate indices for performance. We examine all positions to ensure they still fit our style matrix. We discuss all of these points with our client and talk about our expectations for the coming year. Any adjustments to risk tolerance or income need that our client may have are addressed and the portfolio is rebalanced to reflect any changes.
Quantitative Evaluation Process
The stock selections are put through our quantitative evaluation process that weights our selections by 10 sectors and looks for the best risk-adjusted time to enter or exit a position. If all processes of the analysis signal a buy, we enter the position and are long in the equity until one of the evaluations break down. We then exit and push to cash equivalents to await our next equity entry position.
Fundamental Research Process
We take a bottom up approach to the research of equity selections. After our screening process is completed, we then utilize research from Thompsons and S&P to evaluate the companies and determine if they are included into our Value Growth Blend Strategy.
Macro-Economic Research Process
Leveraging our Independent Advisory status, we use research from the top research firms on Wall Street to guide our Macro-Economic Sector weightings.