Consulting Services

PFA employs a multi-stage or phased approach to help investors and fiduciaries comply with prudent diversification standards:

  1. Portfolio assessment: low-cost screening tests to identify hidden diversification problems;
  2. In-depth, diagnostic procedures to pinpoint causes and recommend solutions;
  3. Help implementing recommended solutions; and
  4. Monitoring services and reporting on ongoing compliance.

In addition, we also offer Ad Hoc Fiduciary Compliance Consultation(1/2-hour consultation: $225;  1-hour consultation: $350.)

 Stage I
PORTFOLIO ASSESSMENT
Stage II
IN-DEPTH DIOGNOSTIC INVESTIGATION TO PINPOINT CAUSES AND RECOMMEND SOLUTIONS
Stage III
ASSISTANCE WITH IMPLEMENTION OF RECOMMENDED SOLUTIONS
Stage IV
Periodic Monitoring
Question Answered:Is portfolio prudently & reasonably diversified?What changes must be made to bring the portfolio into compliance with diversification standards of 3rd Restatement of Trusts and UPIA?What is the best way to implement the recommended changes?Is the ongoing fiduciary requirement for periodic monitoring of a portfolio’s risk and diversification done and properly documented?
Purpose:Identify extent Uncompensated Risk was removed from the portfolio, and see how it complies with minimum fiduciary standards.To pinpoint causes of inadequate diversification and recommend solutions that bring diversification into fiduciary compliance.To ensure implementation of recommended changes remediates the problems.To provide documented evidence from a 3rd party that the fiduciary followed procedural prudence in managing the portfolio’s uncomp-ensated risk.
Description of PFA’s Included Services:1. Calculate and measure the equivalent number of equally weighted diversification resources in the portfolio.
2. Compare uncompensated risk removed by diversification to a “Reasonable” fiduciary standard.
1. Prepare a comprehensive analysis of the portfolio’s Unsystematic Risk & Diversification.
2. Identify root causes of the inadequate diversification and remediate their inadequacies.
3. Develop a separate and distinct prudent diversification strategy that will function as a prudent overlay to the return and overall risk strategy.
4. Draft addendum to Investment Policy Statement (IPS) adding strategy for managing uncompensated risk.
On an as requested basis, we can provide help with implementation of any or all of the recommended solutions, as well as perform the following services, but only if desired by client.

1. Help establish uncompensated risk metrics for portfolio.
2. Separately fine tune portfolio using asymmetric correlations and rebalance to achieve maximum diversification in accordance with IPS addendum.
3. Separately issue a written certificate addressed to the fiduciary, documenting that the diversification strategy implemented in the rebalanced portfolio is prudent and reasonable.
Investigate and document fiduciary’s ongoing compliance to care, skill, and caution with respect to diversification by subjecting monitored portfolio to our intense 10-step monitoring and reporting process.
Deliverables:A written report explaining results obtained and meaning.A written report explaining results and detailing corrective measures needed to comply with fiduciary diversification requirements.Help and Assistance only when RequestedWritten Monitoring Report
Timing:48 Hours2-4 Weeks Depending on Portfolio’s ComplexityAs RequestedPeriodically
Fee:$1,500 Fixed Fee*Fixed Fee – Quoted in AdvanceHourlyFixed Fee – Quoted in Advance

CONTACT US FOR SERVICES

*The $1,500 fixed fee is based on portfolios having 75 or fewer constituent securities with symbols. If a portfolio does not conform to the specified criteria, call 800-572-7574 to review your portfolio’s particulars with a team member and receive a firm price for our Stage I service.

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