Whether serving in the capacity of Trustee of a Trust or Investment Manager for our clients’ portfolios, GB Financial adheres to the standards of Prudent Practices for Investment Advisors thru a disciplined investment approach.

Our Investment Management process can be broken down into the following five (5) basic steps:

1. In conjunction with the Client, evaluate the needs and purpose(s) of the account and determine the appropriate risk/reward profile for the account thru modeling the proposed portfolio.
   
   
2. In conjunction with the Client, decide on an appropriate long-term investment policy suitable for the level of risk to be assumed.
   
   
3. Implement the agreed-upon-approach through a strategy of selecting individual investments consistent with the identified risk, return, and time horizon.
   
   
4. Monitor the performance of individual investments against an appropriate index, peer group, and Investment Policy Statement to determine if the investment still belongs in the portfolio.
   
   
5. Monitor the total returns of the portfolio against the targeted rate of return as specified in the Investment Policy Statement.
   

Initially, we spend a great deal of time with our clients to understand our Client’s:

• Goals for the portfolio
• Liquidity requirements
• Withdrawal requirements
• Expected life of the portfolio.

With this information in hand, we then determine an appropriate risk-profile thru modeling the risk/reward probabilities of different investment approaches (asset allocations) using Monte Carlo simulations. Monte Carlo is simply defined as an analytical method used to simulate random returns of uncertain variables to obtain a range of probable outcomes.

We believe it is critical for each client to understand the probable range of returns for any given “Asset Allocation.” We believe it is very important for our Client to focus on the downside potential of the portfolio in addition to defining a targeted “annualized rate of return” for the Investment Policy Statement. The simulations we perform comply with the Prudent Investor Rule contained within the Uniform Prudent Investor Act (UPIA) (UPIA §2(b) [Texas Trust Code § 117.004(b)]).