PORTFOLIO MANAGEMENT
A CLIENT CENTRIC FOCUS
“HLCM provides customized portfolio strategies with the goal of offering you peace of mind.”
– Michael Anderson,
Chief Investment Officer
Why Choose Hi-Line Capital Management
Benefits
Customized comprehensive portfolio management
CAPITAL PRESERVATION
TAX EFFICIENCY
DEVELOP A PLAN TO HAVE THE MONEY YOU NEED WHEN YOU NEED IT
An Experience Team of Professionals
Access to Your Advisor
A fiduciary commitment to act in your best interests
Firm culture of integrity & solid industry reputation
Proprietary Research = Long-Term Success
YOUR EXPECTATIONS,
NEEDS, AND GOALS
- Your objectives and/or constraints
- Your tolerance for risk
- Your tax bracket
- Your assets and liabilities
- Your income needs
- Your desired outcome
HLCM Portfolio
Management
- Analyze the markets for compelling investments
- Rank attractiveness of various asset classes
- Construct portfolio with risk/reward trade-off assessment
- Stress-test for new risks
- Monitor daily
- Rebalance regularly
- Minimize taxes
Proprietary Research = Long-Term Success
YOUR EXPECTATIONS,
NEEDS, AND GOALS
- Your objectives and/or constraints
- Your tolerance for risk
- Your tax bracket
- Your assets and liabilities
- Your income needs
- Your desired outcome
HLCM Portfolio
Management
- Analyze the markets for compelling investments
- Rank attractiveness of various asset classes
- Construct portfolio with risk/reward trade-off assessment
- Stress-test for new risks
- Monitor daily
- Rebalance regularly
- Minimize taxes
Private Client Services
Portfolio Management Services
EQUITY INVESTING
Separately managed accounts
A total return-based portfolio of good companies run by good management at good prices
Best for investors with a 5+ year investment horizon (due to the inherent volatility of prices) and suitable for investors able to accept volatility of prices
Risk management priority is avoiding permanent capital loss
STRATEGIES
Intrinsic Value Equity Strategy: Objective is returns above benchmark over full market cycle
High Conviction Equity Strategy: A subset of the holdings from the Intrinsic Value Equity Strategy representing our “best ideas”. This portfolio should be more tax efficient in the long term for taxable accounts
INCOME INVESTING
Separately managed accounts
Income objective portfolio
Best for investors with either 5-year or less investment horizon or lower risk tolerance
STRATEGIES
Income Advantaged Strategy: Objective returns at least 1.5% above U.S. Treasury bonds
Inflation Protected Strategy: Objective is returns exceeding inflation
CASH MANAGEMENT
Separately managed accounts
A liquidity-based portfolio
Best for investors with specific needs or less than 1-year investment horizon
Financial Advisory Services
ASSET BUILDER
Designed for clients in the early stages of saving for retirement.
Assisting with saving priorities and types of accounts
Education about long term expectations
RETIREMENT PLANNER
Designed for clients seeking assistance in saving for retirement.
Saving, spending, and debt analysis
Retirement planning and goal setting
Education: better understanding of the markets
PERSONAL CFO
Designed for clients seeking comprehensive advisory services who are in/approaching retirement
Financial planning, goal setting, asset allocation
Education: better understanding of the markets
Temperament coaching guidance: maintain rational behavior during volatile, uncertain markets
Improve decision making for the long term
Holistic services: exploring insurance and other protective needs
Client Success Stories
Simplifying
the Complex
Creating a Customized
Portfolio Strategy
Analyzing the Tradeoffs of
Retirement Planning
High Quality Service and Competitively Low Fees
PORTFOLIO MANAGEMENT SERVICES | Fees* | Annual Minimum |
Equity Investing | 0.68% | $1,700 |
Income Investing | 0.46% | $1,150 |
Cash Management | 0.18% | $450 |
Fee Example:
HLCM Equity Strategy management of a $250,000 portfolio:
Annual Fee = $1,700 (0.68% x $250,000)
HLCM SERVICES
- Investment management and advice, including customized strategies
- Planning: budgeting, cash flow analysis, credit and risk management, retirement planning
- Asset allocation and asset location
- Independent (third party) asset custody
- Monthly custodial reports
- Quarterly reviews and statements
- Tax efficiency
- Frequent, timely communications
- Responsiveness and accountability
FINANCIAL ADVISORY SERVICES | Fees* | Annual Minimum |
Personal CFO (porfolio advisory) | 0.88% | $1,760 |
Retirement Planner | 0.70% | $1,050 |
Asset Builder | 0.50% | N/A |
Fee Example:
Asset Builder financial advisory service for a $50,000 portfolio:
Annual Fee = $250 (0.50% x $50,000)
*A Note about Fees
- Fees are based on account market values at month-end.
- HLCM does not charge any termination or closing fees.
- HLCM will not reveal information about your accounts to outside parties unless the disclosure is lawfully permitted or required. HLCM does not provide account or personal information to any outside companies for the purpose of independent telemarketing or direct mail marketing.
- The fee is payable monthly in arrears. Client can choose to have the fee be paid by custodian.
- The fee does not include (when applicable): brokerage commissions, SEC fees, dealer spreads, asset management fees of third-party managers, interest, taxes, or other account expenses which are the responsibility of the Client.
The HLCM Client Experience
Intelligent Investing
Value-based philosophy, ability to estimate the value and being independent
Risk Management
Focus on permanent loss avoidance and investing with a margin of safety
Fiduciary
Always placing our clients’ best interests first
How to Think about Markets
By embracing volatility and expecting occasional craziness
Low Fees and Low Total Cost
All fees disclosed and transparent
Lets start a conversation.
We’d be happy to schedule a free consultation with you to discuss your goals.
25 1st Ave NW
Watertown
South Dakota, 57201
(605) 878-0897
info@hi-linecapital.com
Form ADV
Privacy Policy
Disclosures
© Hi-Line Capital Management.
All rights reserved.
Annuity Frustration Example
ANALYSIS OF CLIENT NEED
- John came to us with questions about an annuity that he had purchased years ago from another advisor.
- John explained that when he went to take out money from the annuity, he was informed that there were controls on how much he could take out.
- John explained he did not understand the annuity nor how much he was paying in fees.
HLCM’S INSIGHT
-
HLCM Capital Management reviewed the annuity, features and fees being paid. The annuity promised income for life but restricted how much money could be taken out each year to keep the income for life promise. The total annual fees paid by John was about 3.00%.
-
We reviewed with John alternative options through the use of proprietary strategies that would give him the flexibility of distribution he wanted and lower the fees he was paying each year.
OUTCOME
-
HLCM was ultimately hired to be John’s new advisor and investment manager.
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We implemented our recommendations, giving flexibility, producing additional income, and lowering John’s fees by over 70%.
-
In a short period of time, HLCM had transitioned and restructured the account for John.
Customized Portfolio Solutions
ANALYSIS OF CLIENT NEED
-
Bill, a business owner and financially minded individual uses multiple investment firms to manage his assets.
-
Bill was seeking additional diversification but also didn’t want another advisor that required him go through a financial plan.
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Bill also didn’t want a portfolio of index funds or ETFs as he could do that on his own.
HLCM’S INSIGHT
-
HLCM explained how they are focused on investment management.
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HLCM reviewed their four proprietary strategies with Bill.
-
After Bill expressed that he interest was in a stock portfolio HLCM reviewed the equity portfolios philosophy, process and characteristics. Those being intrinsic value philosophy, internal research and selection, and the portfolio general invests in 20-30 companies.
OUTCOME
-
HLCM was ultimately hired as the portfolio’s subadvisor.
-
We implemented the Intrinsic Value strategy as a diversifier to Bill’s other investments to help manage the risk (i.e., volatility).
Retirement Planning Analysis
ANALYSIS OF CLIENT NEED
-
Richard and Helen are middle aged with a retirement goal of approximately 10 years.
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They needed to review their retirement plans and make decisions about savings rates, spending habits and asset allocation.
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They had concerns about the timing of their retirement and whether their retirement savings would support their lifestyle expenses.
-
They wanted to ensure their savings were sufficient enough to retire on or if they needed to increase their savings rate over the next 10 while working.
HLCM’S INSIGHT
-
HLCM helped sort through the many trade-off decisions Richard and Helen faced and developed a plan to consolidate all their retirement assets.
-
HLCM worked with the couple to anticipate quality of life and spending needs in retirement. A revised investment plan was created to incorporate their risk tolerance levels.
OUTCOME
-
A financial plan was produced to give a holistic view of current savings, current and project retirement expenses, current savings rates and retirement income sources.
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The couple’s retirement assets were quickly and successfully consolidated at HLCM.
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The clients have peace of mind that their decisions were carefully analyzed and their future plans are more secure.