Step
1: Analyze Current Position,
Establish/Define Objectives and Goals
Step 2: Create
Strategic Asset Allocation
Step 3: Formalize
Investment Policy Statement
Step 4: Conduct
Investment Manager Research and Selection
Step 5: Implementation
of Investment Strategy
Step 6: Ongoing
Performance Measurement and Due Diligence
Step
1: Analyze Current
Position, Establish/Define Objectives and Goals
We analyze a client's current holdings and can
provide up to a 3-year historical look-back
of past performance. This provides a basis for
the next step which is to establish/define
the client's overall objectives and goals.
After analyzing a client's current holdings,
we will utilize both strategic and tactical
strategies at the point of implementation. | > Back To Top
Past performance is no guarantee of future results.
Step
2: Create Strategic
Asset Allocation
An asset allocation study is conducted after
assessing each client’s investment goals,
tolerance for risk, performance expectations,
and other parameters and constraints. This study
determines the optimal exposure a portfolio
should have to major asset classes such as stocks,
bonds, and cash investments. Ultimately, asset
allocation may be the most important decision
for determining the portfolio’s risk and
return. | > Back To Top
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
Step
3: Formalize Investment
Policy Statement
Once the asset allocation decision is made,
an Investment Policy Statement (IPS) is composed.
This document serves as a game plan for the
investment management of the portfolio. The
guidelines established in the Policy are based
on a thorough understanding of each client’s
investment objectives and constraints. The IPS
outlines the following:
- Investment Objectives
- Asset Allocation Guidelines
- Risk Tolerance
- Performance Benchmarks
- Tax Considerations
- Investment Return Expectations
- Manager Selection Criteria
- Consultant Responsibilities
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Step
4: Conduct Investment
Manager Research and Selection
With the parameters outlined in the Investment
Policy Statement, CapTrust follows a rigorous and systematic
process to identify well-known investment talent
to manage the portfolio. Our research and analysis
draws from a universe of institutional and other investment managers.
We screen from databases with a multitude of domestic and global investment managers.
Our quantitative and qualitative analysis examines
the following key areas with each manager:
- Organizational Structure
- Portfolio Management Team
- Investment Process
- Investment Style
- Performance
- Relative Risk
- Marketing/Client Service
- Trading and Operations
> Back To Top
Step
5: Implementation
of Investment Strategy
After managers are employed based upon policy,
investment performance is carefully tracked.
This measurement is vital to determine if the
client’s goals are being achieved.
Custom designed executive summary reports are
produced, at a minimum, quarterly and concisely
show performance and asset growth of each managed
account individually and the portfolio in aggregate.
Returns are time-weighted and annualized where
appropriate. For comparative purposes, benchmark
index and peer group returns are also presented. | > Back To Top
Step
6: Ongoing Performance
Measurement and Due Diligence
To build upon our portfolio monitoring for each
client, investment performance for all managers
is reviewed. A detailed portfolio analysis and performance style analysis for each manager are produced and reviewed
quarterly. In-person manager visits are conducted
once every year. In addition, procedures are
in place to review holdings to assure that the holdings adhere to
the client’s Investment Policy Statement. | > Back To Top |
