Clients make sound decisions about managers and allocations when they have a full understanding of how the selections and weightings of individual managers collectively tilt a portfolio toward particular investment styles, sectors, or capitalization biases. Individual manager selection is vital to long-term success; however, we also strive to build well-structured portfolios at the asset class level. Each asset class portfolio undergoes a quantitative optimization process, known as a Mean Benchmark Optimization (MBO). This process is similar to our asset allocation models, but is on a relative rather than an absolute basis.
Our Consulting Teams work closely with our dedicated Investment Manager Research department to identify complementary managers for each client and their underlying portfolios. We believe that each client's needs are unique and our process reflects this need for customized solutions.