We consult with labor unions, professional service firms, businesses and endowments to design asset allocation models consistent with their cash follow requirements and to monitor the performance of their investment managers. And we build customized, client-specific investment plans. Here are two examples:
For Foundations, Endowments, Charitable Organizations, Labor Unions and Businesses: We begin with the following dialog: Do you have a cash flow forecast that is consistent with the income generated by your investments? Can we assist you in building a more detailed and accurate cash flow forecast? Are your asset class selections optimal given cash flow requirements? Do your portfolios’ expected returns square with actuarial assumptions regarding funding requirements? Is your discount rate appropriate?
Thereafter we proceed to this discussion: Do you have a current and financially sound Investment Policy Statement (“IPS”)? Is it designed to achieve stated objectives with respect to asset allocation, rebalancing, manager selection, governance policies and similar matters? Are your Investment Managers operating in a prudent, cost-efficient manner in accordance with your IPS? Are your Managers meeting or exceeding their benchmarks? Are their fees reasonable?
As we work through this discussion we suggest modifications to asset class selections and/or IPS’s as may be beneficial or necessary. In general, we find that most of our clients are managing their portfolios very well. Our dialog is always constructive, and never negative or critical. Our primary goal is to ensure that the client’s funding mechanisms are in sync with the client’s cash flow requirements. In addition, we provide the documentation that reflects that the client’s Board and management are properly discharging their fiduciary duties.
For Professional Service Providers, Growing Companies and their Owners: We create financial plans tailored to our client’s firm and associated individual goals and financial situations, evaluate the propriety of different forms of investments, evaluate the role that constructive debt can play in building the business, and evaluate the business operation to see if the business is running as efficiently as it might. Working with us takes considerably less time, effort and expense than you might expect.
For the business owner or professional service provider we work with your service providers who address compensation, profit distribution, deferral opportunities, tax laws, and asset protection to create a customized investment strategy to meet your long-term goals. Some of the questions we address include:
Contact us. We’ll work collaboratively with you and your other advisors in an effort to optimally position your investment portfolios.