Our OCIO process is delivered in four steps:
Investment Policy Creation
We clearly define our client’s unique needs, objectives, risk tolerances and constraints of the institution and asset pool. We then lead clients through a collaborative process to create a tailored investment policy statement (IPS). This process starts by collecting the institution’s important financial information, understanding its governance structure, and prioritizing the focus around what the institution is seeking to achieve. We document the institution’s objectives, constraints, risk tolerance level, roles and responsibilities, asset allocation guidelines, and all other pertinent information into a tailored IPS. Meanwhile, concurrent with IPS, we are leading discussion with the client on the asset allocation analysis.
Asset Allocation Creation and Investment Policy Affirmation
Once the institution’s return objectives and risk tolerance levels have been identified, we work with the client to determine whether a Model Portfolio or a Custom Portfolio is appropriate for the institution.
If one of the Model Portfolios is chosen, we help educate the client on asset allocations and use this understanding to insert allocation percentages into the final IPS document for the client to affirm.
If a Custom Portfolio is chosen, we begin developing a tailored asset study based the client’s return objective, risk tolerance level, and any other constraints. Such a study incorporates our view on capital markets and expectations regarding return and risk of various asset classes. The study compares the historical and projected returns and risks of a variety of different asset mixes. We use this information to guide the client toward a recommended, Custom Portfolio asset allocation. Once determined, we insert these allocation percentages into the final IPS document for the client to affirm.
Once the institution’s IPS and asset allocation have been finalized, we lead the implementation of the investment portfolio. We do it by collecting advisory agreements, opening custodial accounts, transferring assets, and assigning trading authority.