Step 1: Formulate an Investment Plan

The first step in an advisory relationship with North Capital is to determine your objectives, constraints and any special circumstances that should be considered in formulating an investment plan. For individuals, this includes a comprehensive financial assessment and portfolio risk evaluation, determination of education savings and retirement goals, and strategic tax planning. For institutions, we will work with your Board and staff to delineate your investment objectives, highlight conflicting goals, and develop policies and strategies that are appropriate for your organization.

Step 2: Develop an Asset Allocation

After your needs and goals have been determined, we will make specific recommendations including the development of an asset allocation proposal designed to achieve your objectives. At this stage of the process, the asset allocation proposal will reference investment styles and strategies, not specific securities, funds or managers. This process bridges the planning phase and the implementation phase and is designed to highlight risks and constraints that may have been overlooked during the development of the Investment Policy Statement.

Step 3: Execute the Asset Allocation Plan

During the implementation phase, North Capital will recommend specific funds and managers to effectively implement your asset allocation plan. The execution strategy will depend upon the specific asset allocation and on tax, cost, liquidity and other considerations that have been highlighted during the planning process. For example, certain managers and funds may require high minimum investments, while other investments, such as financial futures, may not be appropriate for some investors. North Capital will work closely and interactively with you to ensure appropriate diversification and execution in a timely, efficient and cost-effective manner.

Step 4: Monitor and Rebalance

Ongoing monitoring and reporting commence with the implementation of your portfolio investment plan. In addition to ongoing due diligence of investment strategies, managers and funds, we will keep you informed of progress toward your investment objectives through conference calls, meetings and comprehensive quarterly portfolio reports. Portfolios are rebalanced on an ongoing basis as necessary and appropriate, depending on market conditions and your particular circumstances and after consideration of taxes and transaction costs.