Portfolio Management Process

Follow Uniform Fiduciary Standards of Care

Know standards, laws, and trust provisions; prepare and control investment policies; diversify assets, use “prudent experts” and document due diligence; control and account for investment expenses; monitor activities; avoid conflicts of interest and prohibited transactions.

Analyze and Formalize Policies

Include details regarding time horizon, expected performance, downside risk tolerance, income needs, and tax status. 

Design and Implement Asset Allocation

Diversify asset class, sector, and industry to position portfolio for upside potential while protecting against concentration.  Determinants to asset class returns are used to generate allocations that achieve expected return and volatility goals.   Terms of trade, covariances, and other global factors are considered.  We use custom capital market assumptions based upon economic historical and forward looking analyses.

Monitor and Report

Scientific monitoring provides valuable information.  Underperformance is analyzed and action is taken when rules are broken.  Outperformance is analyzed; attribution analysis enhances quantitative and economic research.