| 1) |
Determine
the investment objective and risk tolerance of the client. |
| |
a) |
Click here
for an Investment Profile Questionnaire. |
| 2) |
Establish an asset allocation strategy
coinciding with the individuals risk tolerance and objective. |
| |
a) |
Investment Professionals can use the Asset
Allocation tool for assistance with this step. |
| 3) |
Build a custom diversified portfolio
for the client based on objectives, risk tolerance and allocation
needs. |
| |
a) |
Once asset allocation percentages
have been determined, begin to isolate candidates for selection |
| |
b) |
AAS recommends that professionals find
multiple candidates per asset class for comparison. |
| |
c) |
Securities with high AAS
Rating Scores, recent AAS Buy Recommendations
and moderate AAS Buy Frequency over Last
60 Days are good candidates. |
| |
d) |
AAS recommends that professionals research
the candidates and watch their movement for several days. |
| |
e) |
Select the securities appropriate for the
clients investment objectives, risk tolerance and allocation
needs. |
| |
f) |
AAS also recommends that professionals gauge
the market and determine if it’s a good time to enter |
| |
|
| |
i) |
Clients will rarely get
upset if they’re in cash when the market is trending
down. |
|
| 4) |
Commit client assets to the securities
selected |
| |
a) |
This can either be done all at one time,
or spread out over several days |
| 5) |
Investment portfolio maintenance. |
| |
a) |
Once the portfolio is established, professional
investors should keep an eye on the AAS Rating
Score, the AAS Buy Recommendation
and the Sell Limit Watch of the selected
securities. |
| |
b) |
Pay special attention to any securities that
have a steadily declining AAS Rating Score. |
| |
c) |
If a security currently owned no longer has
an AAS Buy Recommendation but the
Last CP is greater than the Sell
Limit Watch, this is considered a recommendation to “hold”
the security. |
| |
d) |
Remember that AAS does not provide sell recommendations
to its subscribers. |
| |
|
| |
i) |
Professional investors
have discretion over when to sell based on their client’s
individual risk tolerance and investment objective. |
| |
ii) |
It is highly recommended
that professional subscribers sell the holding if the
Last CP is below the Sell
Limit Watch. |
|
| |
e) |
It is recommended that professional investors
periodically use the Asset
Allocation tool to re-balance their client’s portfolio |
| |
f) |
For further information, please read How
to Understand the AAS Investment Research Report. |
| |
|
|
| |
|
|
