Frequently Asked Questions:
Who is Gradient Investments LLC?Gradient Investments LLC is an Registered Investment Advisor (RIA).
What does Gradient Investments do?
Gradient offers a portfolio management platform to other independent investment advisors. We design, manage and monitor diversified investment portfolios. There are multiple portfolios geared toward different client risk and return profiles. We work with you, the advisor, to align your clients into a portfolio that is most likely to meet your clients goals. This platform allows the advisor to focus on relationship management and attaining new relationships. It is extremely difficult to design and monitor portfolios, manage the client relationships and do the things necessary to grow your practice. We work with you in the investment management process and offer you a "back office" for that function.
Where are my clients assets held?
Gradient utilizes several custodial broker/dealers.
How is Gradient Investments paid?
Gradient Investments is paid on a fee basis and does not receive commissions. Our fee structure is identified in section F of the ADV part II.
How are the portfolios designed?
We first start by identifying portfolio parameters for each of the individual portfolio models. After screening for both ETFs,closed end funds and mutual funds based on performance, style adherence, consistency and statistical risk measurements we find ourselves with a universe of 50-70 different securities. We then perform due diligence on each of the securities individually and further narrow our universe down to 20-30 securities for each model. The next stage is to develop multiple portfolios of these securities and back-test and review the performance of the securities and portfolio compositions in varying market conditions. This allows then to identify the top 10-15 securities in which will be placed in the portfolio model. The last stage is to identify the optimal mix to give us the amount asset allocation and sector exposure that we are looking for in the particular model. The portfolios are monitored daily and rebalanced at our portfolio managers discretion.
If I have questions or my clients have questions about the portfolios that I am not comfortable in answering can I call and speak to someone at Gradient Investments?
We are here as a resource to you the advisor and your clients. Our portfolio managers can be available for client meetings to discuss the portfolios if you desire. Please do not hesitate to contact us at 888- 824-3525.
