Investment Management Overview
Client portfolios are managed using a process that combines academic theory and informed market judgment. Academic theory helps us evaluate the expected risk and return profiles of various asset allocation alternatives. Informed market judgment helps us identify, and react to, unusual periods in the capital markets for the benefit of our clients’ portfolios.
Core Principles
A diversified portfolio is the most effective safeguard against the inherent uncertainty of the capital markets
Disciplined rebalancing policies are required to maintain a portfolio’s risk profile
After-tax returns are more important than pre-tax returns for the individual investor
The creation and preservation of wealth requires a long-term orientation
| Creating an Investment Policy Statement |
Develop a profile of the client’s unique circumstances and needs
Establish targeted ranges among asset classes based on the client profile
Confirm appropriateness of strategic ranges
|
| Portfolio Construction |
Low-cost index strategies to access efficient sectors of the market (e.g., Domestic Equities)
Actively-managed strategies to access less efficient sectors (e.g., International Equities) using managers with a demonstrated track record of adding value
|
Manager
Selection
Criteria |
General investment policies of the manager (e.g., long-term orientation, use of leverage)
Tenure and investment record of manager
Expense ratios
Tax efficiency of the strategy
Organizational culture and ethics
|
| Monitoring and Rebalancing |
Quarterly reporting
Regular reviews with Managing Director and Investment Department staff
Rebalancing in response to market dynamics or changing client circumstances
|
