Nightingale Advisors is a team of professional investment managers putting the power of probability to work to manage client asset allocations and equity portfolios. Our work quantifying investment risks forms the foundation of everything we do for clients.

ASSET ALLOCATION

RISK ASSESSMENT

Every full Nightingale client submits a risk assessment survey that begins a conversation between us and them about risk tolerance. We take into account overall wealth, longevity, liquidity needs and, perhaps most importantly, strive to understand the purpose that the wealth we’re discussing serves. Is to sustain and build a family? A foundation? A business? What legacy are we helping to sustain and grow?

We agree with our clients on the proper balance for their portfolio. We start with a simple equity/fixed income allocation and identify the right balance “on average.”

ALLOCATION DECISIONS

Using the simple risk scores we adjust our client portfolios weights between equities and non-equity instruments.

In a risky market – RM 5 – we reduce the client weight in equities by 20 percentage points. If the client’s risk assessment results in an agreed upon standard allocation of 60% equity and 40% non-equities, that would mean RM 5 drops the equity percentage to 40% and raises the non-equity percentage to 60%.

 

RM SCORE EQUITIES NON-EQUITIES
1 +20% -20%
2 +10% -10%
3 Allocation at agreed upon base.
4 -10% +10%
5 -20% +20%

RISK MODELING

Using a combination of Equity Risk Sciences Market Risk Indicator and a number of market-oriented risk and sentiment measures we develop a score that identifies our view of the riskiness of the current equity market. It encompasses valuation, growth, financial conditions, and some sentiment indicators

We create a simple scale of 1-5 that describes our view on the riskiness of the market. A score of 1 is the least risky and 5 is the most risky.

EQUITY MANAGEMENT

LET’S WORK TOGETHER

We work as a single united team with market leading firms around the world and give our clients the highest quality advice possible.

MAKE ENQUIRY