Services
Trust in Advisor Team
LotusGroup prides itself in hiring, training, and compensating a very select set of individuals for its Private Client Advisor Group. We predominantly cultivate advisors who are great listeners, empathetic to Client's needs, and ethically driven. In doing so, we aim to have a superior Client experience that is built on innate trust, developed over years of close interactions with our Clientele.
Furthermore, LotusGroup is a completely independent and autonomous advisory firm and has no paid affiliations with any mutual funds, hedge funds, or any other institution that would influence advice that we give to Clients. In this way, our advice is conflict free and aligned with our Clients.
Finally, we pride ourselves on being completely transparent, both in our fee structure and in our reporting. Client portfolio statements are issued quarterly and are always reported net of fees, so Client's can clearly see the true performance of their portfolio(s). Our Client surveys have shown that trust was the number one reason for choosing LotusGroup. As a natural outcome, a major growth driver for our business has been referrals from our "thrilled" Clientele.
Proven Track Record
We pride ourselves on a 97% Client retention rate over the past 5 years, attributable to our "thrilled" Clients. We have an approximate 70/30 split between families that entrust us with their entire financial situation and individuals / companies that outsource a portion of their wealth for us to manage. Client portfolios range from $100k to $6 million, with the average Client size growing at an annualized pace of over 60%, proving that our Clients continue to entrust us with their financial futures. In addition, the average annual savings has grown 200% each year, demonstrating our commitment to helping Clients continue to save.
Through our history, we have walked hand-in-hand with Clients through up markets, down markets, and choppy sideways markets, achieving real returns over the long-term. Our advisors work closely with Clients to ensure that fear and greed do not overtake Client emotions during turbulent periods in the investment marketplace.
Though our Clients almost always select us based on trust factors, we pride ourselves on a sophisticated and continuously improving advising and investment strategy.
Investment Strategy Competence
LotusGroup's investment strategy has been developed over the past decade and incorporates the following three facets:
- Client Appropriateness: Our Private Client Advisors are continually meeting with Clients to assess their changing situation (marriages, births, deaths, inheritances, etc.). Advisors provide feedback to our investment team to ensure that the Client’s assets are in an appropriate investment strategy and mix of assets. We also ensure that their specific situation is being integrated appropriately (e.g. awarded company stock options).
- Tactical Asset Allocation: LotusGroup invests in securities that spread over 38 different asset classes, selecting appropriate weightings for each based on a Client's risk profile as well as macroeconomics, fundamental / technical analysis, and general market sentiment. Using our proven investment strategies, we continually shift Client assets to where we see an advantage in the reward/risk trade-off.
- Rebalancing: We employ a targeted rebalancing approach to ensure a forced discipline of keeping Client portfolios appropriately balanced. Continually rebalancing the portfolio to the specified quarterly targets results in an automatic process of buying low and selling high, while reducing the risk of volatility in the portfolio.
Services and Network
In addition to managing Client assets, we offer a number of value-add services:
- Financial plans & Goal-trackers
- Insurance Needs Analysis & Discount Purchase
- Contingency / Emergency Plans
- Private Investment Advice (e.g. real estate)
- Tax reduction strategies
Our Private Client Advisors work as a Client's advocate to quarterback their financial situation by determining specifically what a Client needs and wants over time, and focusing on those areas. Thereafter, our advisors hand-hold all the intricate details associated with implementing these services so that Clients can truly enjoy an outsourced service where their wishes are completed in a timely and effective manner.
Financial Planning and Goal Tracking
It is frustrating when details are forgotten and opportunities are lost. Our advisors are driven, trained, and compensated on their ability to ensure that Client's wishes are fulfilled with a high level of hospitality and professionalism.
Private Client Advising
A well-created and delivered IPS is one of the most important services provided by an LGA Private Client Advisor to a new and existing Client. When the PCA delivers the IPS, he/she should review the Client’s goals and needs explored in the Intro Interview. The delivery process is an important discussion because it allows the Client to ask clarifying questions and allows the PCA to properly set long-term expectations. Some of the important aspects of this process are as follows:
- Investment Objectives
- Liquidity and Income Needs
- Time Horizon
- Investment Fluctuations
- Asset Allocation
- Investment Strategy and Review
- Portfolio Review and Rebalancing Procedures
- Investment Strategy Performance
- Duties and Responsibilities
LGA Investment Methodology
Asset Allocation is a strategy that is used to reduce fluctuations in a portfolio by preventing overexposure to any one single investment asset class in the case of a major price decline.
Portfolio rebalancing involves the shifting of new or existing capital from relatively higher performing areas into relatively lower performing areas for a particular period of time.
Asset allocation weightings are developed using a combination of individual client investment profiles and the appropriate investment vehicles for the current market conditions in each individual asset class.
LGA and the client work together to develop an appropriate investment profile (Aggressive, Moderate, Conservative, etc).
LGA regularly monitors market trends and makes tactical adjustments to the overall asset allocation percentages as deemed appropriate (at a minimum semi-annually, and at a maximum quarterly).
Individual index and fund selections are chosen based on a number of factors, including investment class and region, tax efficiency, performance relative to peer group and strength of the management team.
LGA encourages customers to add new capital to their portfolios on a periodic basis so that rebalancing activities (described in the first section of this document) can occur through new position acquisition.
LGA uses low-cost ETFs, index funds, and mutual funds that minimize portfolio turnover whenever possible.
Finally, in addition to traditional investment account(s), LGA encourages the use of 401K, IRA, and Roth IRA accounts for income-producing assets.
LGA includes the following performance reporting on Quarterly, YTD and LTD periods:
- Account Activity
- Total Return (after fees) and Portfolio Ending Value for period
- Average Annualized Return for Quarter and LTD
- Current Asset Allocation Exposure
- Historical Portfolio Trend