Common understanding can only be achieved through consistent communication.

In our continuous discussions with a wide variety of wealth management professionals, we are struck often by disparate terminology use and the resultant confusion that can arise.  Indeed, one of the most challenging aspects of enabling effective portfolio management is ensuring that all stakeholders have consistent expectations of the outcomes to be achieved.  Ensuring that everyone is singing from the same songsheet - in the same language - is a critical place to start.  To this end, we have outlined below those terms we use frequently in describing our methodology and approach.  We trust this brief glossary will serve as a useful tool in our discussions with you.

Portfolio construction: process of determining what a portfolio should look like. Portfolio construction consists of portfolio modelling and portfolio rebalancing.

Portfolio rebalancing: process of determining adjustments to bring a portfolio in line with model portfolios.

Portfolio modelling: process of interactively appraising, and implementing, desired adjustments to a portfolio.

Portfolio compliance: process of assessing whether a portfolio requires adjustments based on a set of defined critieria.

Portfolio decision tools: tools to perform portfolio modelling, portfolio rebalancing and portfolio compliance.

Implementation: the process of effecting adjustments to portfolios.