Our Process

The Purpose

Institutional pools of assets such as trusts, retirement plans, not-for-profit organizations, endowments or foundations, often engage investment consultants to improve portfolio returns. Typically, value is added by the consultant in four areas:

• Fine-tuning an optional asset allocation strategy
  
• Identifying appropriate money managers
  
• Lowering costs and expenses
  
• Saving time in the development and maintenance of an investment strategy

In step one, we actively listen to you and assess your current position:

• We evaluate your current situation and future needs.
  
• We review the intended purpose of the portfolio, any investment constraints that apply, and the return objectives.
  
• We also determine how assets are allocated, the costs for managing the investments, and the portfolio's historical performance.
  

In step two, we help you design an asset allocation policy:

• We believe that the most important element of an investment policy is asset mix; particularly the ratio of equity and fixed income investments.
  
• We employ optional asset allocation techniques that seek to improve investment returns while managing risk.
  
• We present alternative asset allocation models that illustrate the trade-offs between risk and return.
  

In step three, we help you develop an investment policy statement:

• ERISA requires that fiduciaries of qualified retirement plans create a written funding policy. This document should contain a well-articulated purpose of the policy, a review of the objectives for the investment program, specific asset allocation policies, securities guidelines, money manager selection criteria, and specific performance monitoring procedures.
  

In step four, we help you select money managers:

• We propose several money manager candidates for each assignment required in the asset allocation strategy.
  
• We negotiate favorable money manager account minimums and fees on your behalf.
  
• We coordinate low-cost custody and brokerage services
  

In step five, we monitor and evaluate your investment results:

• A common fiduciary breach is the failure to monitor the activities of a money manager once the manager has been hired.
  
• We prepare quarterly performance measurement reports and graphs that compare your results to stated policy standards.
  
• We evaluate money managers over appropriate time periods to ensure they are meeting expectations.
  
• We rebalance the portfolio, as needed and with your permission, to the asset allocation guidelines formalized in the investment policy statement.
  

In step six, we listen:

Service starts with listening but more importantly, hearing.