“We provide a comprehensive and consultative approach to investment management.” Now, what does that actually mean? Nowadays, it seems like “Investment Management” could describe nearly anything:
- a stock picker reacting to another meme stock
- a robo-investor following a preset algorithm
- a multi-national firm assigning an allocation based on a risk quiz
- a dedicated, in-house investment team thoughtfully building, monitoring, and adjusting your customized and diversified portfolio
We subscribe to that last definition. For us, investment management is more than chasing a trend, automating a process, or one-size-fits-all strategies. We focus on customized portfolios built around a personal relationship…whether that is getting to know an individual or working closely with the board of an organization.
One way we offer that personal approach is through our varied management offerings. Working with our experienced and credentialed advisors, client assets can be allocated to our proprietary In-House Investment Models, curated Outsourced Solutions, or an integrated blend of both.
What types of investment management do you provide?
Greenwood Capital provides both in-house and outsourced management offerings that we can customize to match your requirements and goals.
In House
Our In-House Offerings start (and stop) in our office. Our investment team personally manages and selects individual equity and fixed income assets through a top-down, disciplined process. We lean upon our view of the macro-economic and financial market backdrop to create the framework for high conviction, high control portfolios. We then carefully analyze, select, and allocate tactically to assets with attractive risk-to-reward profiles. In house models include Large Cap Core, Dividend/Income, and Small/Mid equity strategies and both Taxable and Nontaxable Fixed Income offerings.
Outsourced
For a more external approach, we offer comprehensive solutions curated from stand-alone investment strategies managed outside the firm. We manage these in a version of an Outsourced CIO process where our investment team still determines asset allocation and strategy, but instead of picking the stocks/bonds directly, screens and selects best-in-class external managers within asset classes. These managers are then responsible for determining the specific assets in that strategy, allowing for clients to diversify management risk. Our Outsourced Portfolios largely implement ETFs and mutual funds for transactional and operational efficiency – with the new paradigm of active ETFs representing – in our view – the future of outsourced management. Through these vehicles and investment process, we can provide access to world-class asset management in areas such as international equities and alternatives in addition to the stalwart asset classes of domestic equities and fixed income.
In both management offerings, our team determines asset allocation based on our relationship-driven approach and gives you access to our personalized service, stability, and culture of trust.
What are the benefits of each type?
While the specific benefits for each management style vary depending on the strategy and your personal portfolio, there are some general differences.
In-House
In-House Management can allow for greater control and customization, since our team is directly building and managing every aspect of the portfolio. We can tailor portfolios to your specific preferences and/or exclusions, tax situation, or specific organizational needs. It also allows for high-touch active management. You can pick up the phone at any point and call our investment team directly, rather than depend on a call desk and a “we’ll get back to you” culture. Every part of your investment journey is handled by a team who knows you personally. And you can get to know them too! Come to our events or drop by the office anytime and you can meet John, Justin, or the rest of the team.
Outsourced
On the other hand, outsourced management provides access to external asset management that specializes in an asset class or strategy that provides distinction and diversification within portfolios. And you still get to communicate directly with your trusted Greenwood Capital financial advisor for wealth management considerations. The access to multiple, top-tier managers and expert professionals in cost-effective and highly liquid vehicles is a testament to the forward-leaning nature of our business. This allows you to diversify management risk and gain expert access to more asset classes for more comprehensive allocation. Depending on the portfolio, outsourced solutions may also provide greater tax efficiency and increased liquidity and flexibility.
What is best for you?
That depends! Deciding which is the best fit can be determined by your individual goals, desired level of involvement, and tolerance to risk.
In-House may be best if you:
…want to know the person managing each step of your portfolios.
…are an organization looking for curated investment solutions.
…value high-touch, personalized investing experience and communication.
Outsourced may be best if you:
….prioritize diversified management risk.
…are an organization who prefers a division of wealth and asset management.
…looking for transactionally efficient, portable solutions across diverse asset classes.
Not sure? Think you want a bit of both? For many clients, the most efficient solution is a combination of both offering types, integrating elements of in-house proprietary models with active outsourcing. Welcome to the Flexible Allocation Spectrum.
One size does not fit all, so we offer a combined approach to meet the needs of the most sophisticated client. We will build you a customized plan to provide the full spectrum of benefits, allowing you to take full advantage of both in-house and outsourced management.
Whether you’re an individual investor or an organization with a responsibility to your stakeholders, our team can help you determine a personalized allocation strategy built on a culture of trust. We’ll help you navigate the options and benefits of each asset management offer so that you can find the best fit for your long-term financial needs.
You deserve more than an algorithm, a pre-canned strategy, and a call center mentality. Want to learn more about how a personal approach can work for you? Reach today to learn more!
William M. Coxe Jr.
Private Client Advisor
In his role as a Private Client Advisor, William provides personalized client service to high-net-worth individuals, corporations, endowments, and foundations. He works one-on-one with his clients on financial and estate planning, asset allocation, and assisting his clients’ understanding of the capital markets. As a CRPC TM, William specializes in working with individuals and couples on short- and long-term decisions that influence the outcome of a successful retirement plan.
The information contained within has been obtained from sources believed to be reliable but cannot be guaranteed for accuracy. The opinions expressed are subject to change from time to time and do not constitute a recommendation to purchase or sell any security nor to engage in any particular investment strategy. Investment Advisory Services are offered through Greenwood Capital Associates, LLC, an SEC-registered investment advisor.
Excerpts from or links to this article on the Greenwood Capital Insights page have been included in Greenwood Capital social media pages and distributed Greenwood Capital newsletter. As is the nature of social media, the general public is able to post comments and/or “likes” in response to these excerpts and/or links. These comments are unsolicited and are posted by either clients or non-clients, which could be interpreted as client testimonials or public endorsements, respectively, and no cash or non-cash compensation is provided. A conflict of interest could exist related to unsolicited posts as Greenwood Capital and its investment adviser representatives could indirectly benefit from these posts.
